Continental Resources’ (CLR) current implied volatility is 45.8%—about 0.5% lower than its 15-day average of about 46%. As we note in the graph below, Continental Resources’ implied volatility has fallen considerably since the start of 2016.
CLR’s implied volatility was as high as 116% in January this year.
In comparison, peers Oasis Petroleum (OAS) and Whiting Petroleum (WLL) have implied volatilities of 73.2% and 75.6%, respectively. These companies make up 6% of the SPDR S&P Oil & Gas Exploration & Production ETF (XOP). In the next and final part of this series, we’ll check in with analyst recommendations.