Whiting Petroleum’s implied volatility
Currently, Whiting Petroleum (WLL) has an implied volatility of ~51.1%—2.3% higher than its 15-day average of ~50%.
In comparison, Whiting Petroleum’s peers Oasis Petroleum (OAS) and Newfield Exploration (NFX) have implied volatilities of ~46% and ~34.6%, respectively. These companies make up 6.3% of the Energy Select Sector SPDR ETF (XLE).
Using implied volatility to forecast the stock price range
Based on Whiting Petroleum’s implied volatility and assuming a normal distribution of stock prices (statistically known as the “bell curve”) and one standard deviation (probability of 68.2%), Whiting Petroleum stock will likely close between $10.07 and $11.61 in the next seven days.
In the next part of this series, we’ll look at analysts’ price targets for Whiting Petroleum for the next 12 months.