CLR’s Implied Volatility: Forecasting Its Stock Price Range



Continental Resources’ implied volatility

Currently, Continental Resources (CLR) has an implied volatility of ~34.0%, ~2.7% lower than its 15-day average of ~35%.

In comparison, Continental’s peers Oasis Petroleum (OAS) and Newfield Exploration (NFX) have implied volatilities of ~49% and ~31%, respectively. These companies make up 6.3% of the Energy Select Sector SPDR ETF (XLE).

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Using CLR’s implied volatility to forecast its stock price range

Based on Continental Resources’ implied volatility and assuming a normal distribution of stock prices using the bell curve and a standard deviation of one with a probability of 68.2%, CLR stock will likely close between $40.16 and $44.14 in the next seven days.

We’ll explore CLR’s debt position and key financial fundamentals in a second installation of this series, so keep watching Market Realist for updates.


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