Implied volatility for Chesapeake Energy
Currently, Chesapeake Energy’s (CHK) implied volatility is ~55.4%. That’s ~0.18% lower than its 15-day average of ~55.5%. In comparison, peers Cabot Oil & Gas (COG) and Noble Energy (NBL) had implied volatilities of ~36.4% and ~24.7%, 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 $5.63 and $6.57 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.