Electrical and Optical measurements were carried out on permalloy oxide (PyO) thin films made by reactive dual ion beam sputtering at room temperature. VSM measurements at room temperature and 15 Kelvin did not reveal any magnetic moment in 120 nm thick films. The optical refraction and extinction spectra from 200-1000 nm were determined from ellipsometry measurements using a Cody-Lorentz model and provided in a reproducible method to determine the film thickness of PyO films on different substrate materials. PyO is transparent above 700 nm and is strongly absorbing below 500 nm. The resistivity values of PyO samples sputtered at room temperature depend on the oxygen flow rate and is approximately 4E3 Ohm cm for films prepared at 10 sccm. The resistivity of PyO decreases as a function of temperature. The dielectric constant is strongly frequency dependent, decreasing from 500 at 500 Hz to 10 at 1 MHz.