Concho Resources’s Implied Volatility after Its 2Q16 Earnings



Concho Resources’s implied volatility

Concho Resources’s (CXO) current implied volatility is ~34.58%, ~0.1% lower than its 15-day average of 34.61%. As we note in the image below, Concho Resources’s implied volatility has fallen since the start of this year.

We also note that the periods where Concho Resources saw high volatility coincide with high volatility in energy prices (USO) (UNG). With improved commodity prices since the beginning of this year, Concho Resources’s volatility has also fallen drastically.

Concho Resources’s peers Oasis Petroleum (OAS) and Whiting Petroleum (WLL) have implied volatility levels of 82% and 85%, respectively. These companies make up 6% of the SPDR S&P Oil & Gas Exploration & Production ETF (XOP).

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