Implied volatility for Chesapeake Energy
Currently, Chesapeake Energy (CHK) has an implied volatility of ~50.59%, which is ~3.3% lower than its 15-day average of ~54%.
In comparison, Chesapeake Energy’s peer Cabot oil and Gas (COG) and Noble Energy (NBL) had implied volatilities of 37% and ~29%, respectively. Implied volatility for natural gas prices (UGAZ) was 45.12% on January 20, 2017.
Using CHK’s implied volatility to forecast its stock price range
Based on Chesapeake Energy’s implied volatility and assuming a normal distribution of stock prices (statistically known as the bell curve) and one standard deviation probability of 68.2%, CHK stock will likely close between $7.17 and $6.21 in the next seven days.
In the following part of this series, we’ll look at analysts’ price targets for CHK for the next 12 months.