Implied volatility in XOM
The implied volatility in ExxonMobil (XOM) currently stands at 14%. However, the current implied volatility in ExxonMobil has fallen from 16% on January 3, 2017. During the same period, XOM’s stock price fell 10%. (See Part 2 of this series for the discussion of ExxonMobil’s stock performance.)
Peer implied volatility
ExxonMobil (XOM) has the lowest implied volatility in the integrated energy space. By contrast, Petrobras (PBR) has the highest implied volatility standing at 42%, while ENI (E) and Cenovus Energy (CVE) have implied volatilities at around 34% and 35%, respectively.
In the next part of this series, we’ll compare the valuations of ExxonMobil with those of its peers.