uploads///ECA WU Implied Volatility

Encana’s Stock Price Range Forecast for the Week

By

Feb. 8 2017, Updated 9:08 a.m. ET

Encana’s implied volatility

On February 3, 2017, Encana (ECA) had an implied volatility of ~43.7%, which is ~35.5% below its 260–trading day historical price volatility of ~67.8%.

Article continues below advertisement

Stock price range forecast for the week

Assuming normal distribution of prices, using the bell curve model and a standard deviation of 1 based on its implied volatility of ~43.7%, Encana stock is expected to close between $13.30–$11.78 after seven calendar days. Based on the standard statistical formula, Encana stock could stay in this range ~68% of the time.

Other upstream stocks

On February 6, 2017, upstream stocks California Resources (CRC), Occidental Petroleum (OXY), and ConocoPhillips (COP) had implied volatilities of ~74.4%, ~19.9%, and ~26.2%, respectively. The SPDR S&P 500 ETF (SPY) (SPX-INDEX) had implied volatility of ~10.6%.

Implied volatility shows the market’s opinion of a stock’s potential moves, but it doesn’t forecast direction. Implied volatility is derived from the option pricing model. This means the data is theoretical in nature, and there is no guarantee these forecasts will be correct.

Advertisement

More From Market Realist

  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.