Understanding Continental’s Implied Volatility Trend
CLR’s implied volatility
Continental Resources’ (CLR) current implied volatility is 44.9%, or about ~3.8% higher than its 15-day average of 43.3%. While CLR’s implied volatility has been unstable for the past year, its current levels are similar to those of last year.
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By comparison, the Energy Select Sector SPDR ETF (XLE) has an implied volatility of ~15.7%—significantly lower than CLR’s implied volatility.
Peer implied volatilities
Peers Oasis Petroleum (OAS), Concho Resources (CXO), and Anadarko Petroleum (APC) have current implied volatilities of ~58.8%, ~29.5%, and ~30.1%, respectively. Together, these companies make up 7.6% of the SPDR S&P Oil & Gas Exploration & Production ETF (XOP).
To learn more about CLR, read Market Realist’s Continental Resources’ Key 2017 Objectives: What’s Its Focus?