Apache Corp’s implied volatility
On February 6, 2017, Apache Corp’s (APA) implied volatility was ~30.6%—11.4% higher than its 15-day average of ~27.5%.
Forecasting APA’s stock price range
Based on Apache Corp’s implied volatility, and assuming a normal distribution of stock prices and one standard deviation with a probability of 68.2%, APA’s stock will close between $55.41 and $60.33 in the next seven days.
In the next part of this series, we’ll look at analysts’ price targets for APA for the next 12 months.