Whiting Petroleum’s implied volatility
Currently, Whiting Petroleum (WLL) has an implied volatility of ~58%. In comparison, Whiting Petroleum’s peers Anadarko Petroleum (APC) and Concho Resources (CXO) have implied volatilities of ~25.1% and ~26.3%, respectively.
Using implied volatility to forecast Whiting Petroleum’s 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 $8.70 and $10.22 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.