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Analyzing Whiting Petroleum’s Stock Price Range

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Whiting Petroleum’s implied volatility

Currently, Whiting Petroleum (WLL) has an implied volatility of ~58.1%, which is ~14% higher than its 15-day average of ~51%.

In comparison, Whiting Petroleum’s peers Oasis Petroleum (OAS) and Newfield Exploration (NFX) have implied volatilities of ~51% and ~33%, respectively. These companies account for 6.3% of the Energy Select Sector SPDR ETF (XLE).

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Using implied volatility to forecast the 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 $9.91 and $11.65 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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