Anadarko Petroleum’s implied volatility
On February 10, 2017, Anadarko Petroleum’s (APC) implied volatility was ~25.4%—5.3% lower than its 15-day average of ~27%.
Forecasting the stock price range
Based on Anadarko Petroleum’s implied volatility, and assuming a normal distribution of stock prices and one standard deviation with a probability of 68.2%, Anadarko Petroleum stock will close between $66.90 and $71.78 in the next seven days.
In the next part of this series, we’ll look at analysts’ price targets for Anadarko Petroleum for the next 12 months.