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Petrobras’s Pre-Earnings Results Implied Volatility

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Petrobras’s implied volatility

Petrobras’s (PBR) implied volatility currently stands at 62. This is 10% lower than the 30-day average volatility. Since April 12, 2016, Petrobras’s implied volatility has fallen by 42%. During the same period, Petrobras’s stock price rose by 32%. When market sentiments towards a stock are bullish, its implied volatility falls, and vice versa.

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Peers’ implied volatility

Statoil (STO), Cenovus Energy (CVE), and YPF (YPF) have lower implied volatilities than PBR. ExxonMobil (XOM) has the lowest daily implied volatility in the peer group, standing at 14.7. For exposure to global stocks, you could consider the Vanguard Total World Stock ETF (VT).

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