Can We Predict the Price Range for Whiting Petroleum Stock?



Whiting Petroleum’s implied volatility

Currently, Whiting Petroleum (WLL) has an implied volatility of ~55.7%, which is ~3.6% higher than its 15-day average of ~53.7%.

In comparison, peers Oasis Petroleum (OAS) and Newfield Exploration (NFX) have implied volatilities of ~48.9% and ~31.3%, respectively. These companies account for 6.3% of the Energy Select Sector SPDR ETF (XLE).

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Using implied volatility to forecast 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 $8.45 and $9.87 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.


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