Whiting Petroleum’s implied volatility
Currently, Whiting Petroleum (WLL) has an implied volatility of ~56.8%. In comparison, Whiting Petroleum’s peers Oasis Petroleum (OAS) and Continental Resources (CLR) have implied volatilities of ~49.5% and ~34%, respectively.
Using implied volatility to forecast stock price range
Based on Whiting Petroleum’s 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%, Whiting Petroleum stock will likely close between $7.57 and $8.87 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.