Concho Resources’ implied volatility
On February 10, 2017, Concho Resources’ (CXO) implied volatility was ~28.3%, which was 3.6% lower than its 15-day average of ~29.3%.
Forecasting CXO’s stock price range
Based on Concho Resources’ implied volatility and assuming a normal distribution of stock prices and one standard deviation with a probability of 68.2%, CXO stock could close between $137.50 and $148.72 in the next seven days.
In the next part of this series, we’ll look at analysts’ price targets for CXO for the next 12 months.