Anadarko Petroleum’s Volatility Has Fallen This Year


Aug. 2 2016, Updated 8:05 a.m. ET

Anadarko Petroleum’s implied volatility

Anadarko Petroleum’s (APC) implied volatility as of July 27, 2016, was 35.7%, which is ~5% lower than its 15-day average of 37.6%. As the image below shows, APC’s implied volatility has declined significantly since the start of 2016.

Notably, the periods during which APC saw high volatility coincide with high volatility in energy prices (USO) (UNG). Given its improved commodity prices since the beginning of the year, APC’s volatility has also declined drastically.

Anadarko Petroleum’s peers Apache Corp (APA) and Continental Resources (CLR) have implied volatilities of 37.7% and 51.6%, respectively.

APA and CXO make up ~0.2% of the iShares Core S&P 500 ETF (IVV).

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