Implied volatility for Chesapeake Energy
Currently, Chesapeake Energy’s (CHK) implied volatility is ~51.5%, which is ~2.2% lower than its 15-day average of ~53%. In comparison, Chesapeake Energy’s peers Cabot Oil and Gas (COG) and Noble Energy (NBL) had implied volatilities of ~36% and ~27%, respectively.
Using CHK’s implied volatility to forecast its stock price range
Based on Chesapeake Energy’s (CHK) 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 could close between $6.43–$7.40 in the next seven days.
In the next part of this series, we’ll look at analysts’ price targets for CHK for the next 12 months.