Apache’s Implied Volatility and Stock Price Forecast



Apache’s implied volatility

Currently, Apache’s (APA) implied volatility is ~24.3%, which is 7.4% lower than its 15-day average of ~26.2%.

Apache’s peers Concho Resources (CXO) and Sanchez Energy (SN) have implied volatilities of ~27.6% and ~60.0%, respectively.

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Forecasting APA’s stock price

Based on Apache’s implied volatility and assuming a normal distribution of stock prices and one standard deviation with a probability of 68.2%, APA stock should close between $48.05 and $51.39 in the next seven days.


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