Southwestern Energy’s implied volatility
On February 27, 2017, Southwestern Energy (SWN) had an implied volatility of ~58.6%, ~20.4% below its 260-day historical price volatility of ~73.7%.
Stock price range forecast
Assuming the normal distribution of prices using the bell curve model and a standard deviation of one, based on its implied volatility of ~58.6%, Southwestern Energy’s stock is expected to close between $8.89 and $6.33 after 30 calendar days. Based on the standard statistical formula, Southwestern Energy’s stock will stay in this range ~68% of the time.
Other upstream stocks
On February 27, 2017, upstream stocks California Resources (CRC), ConocoPhillips (COP), and Murphy Oil (MUR) had implied volatilities of ~73.7%, ~26.7%, and ~37.5%, respectively. The SPDR S&P 500 ETF (SPY) had an implied volatility of ~11.7%.
Implied volatility shows the market’s opinion of a stock’s potential movements, but it doesn’t forecast the direction of these movements. Implied volatility is derived from an option pricing model, meaning that the data are theoretical in nature, and there’s no guarantee these forecasts will be correct.