Anadarko Petroleum’s Volatility Fell Significantly in 2016

As of November 1, 2016, Anadarko Petroleum’s (APC) implied volatility was 37.1%—about 1.4% higher than its 15-day average of 36.6%. As the following graph shows, its implied volatility fell significantly since the start of 2016.

The highest volatility seen by Anadarko Petroleum this year was 87% on January 20, 2016.

Anadarko Petroleum’s peers Apache (APA) and Continental Resources (CLR) have implied volatilities of 39.7% and 47.2%, respectively.

All of these companies account for 6% of the SPDR S&P Oil & Gas Exploration & Production ETF (XOP).