What Are the Trends in Whiting Petroleum’s Implied Volatility?
WLL’s implied volatility
Whiting Petroleum’s (WLL) current implied volatility is ~69%, ~8.4% higher than its 15-day average of ~63%. As we note in the graph below, WLL’s implied volatility is lower compared to last year’s levels.
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However, WLL’s implied volatility is still higher compared to peers. Continental Resources (CLR) and Newfield Exploration (NFX) both have implied volatilities of ~36%. A year ago, their implied volatilities were 45% and ~40%, respectively. In comparison, the Energy Select Sector SPDR (XLE) has an implied volatility of ~15%.
Implied volatility is an options-model-based estimate of a stock’s potential movements in a given period. In a bullish market, implied volatility is likely to fall, while in a bearish market, the opposite would be true.
For more insight into WLL’s stock movements, read Whiting Petroleum: Is the Reverse Stock Split a Good Idea?