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Forecasting Whiting Petroleum’s Stock Price Range for Next Week

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Dec. 4 2020, Updated 10:53 a.m. ET

Whiting Petroleum’s implied volatility

Whiting Petroleum (WLL) has an implied volatility of ~68.16%, which is ~12% higher than its 15-day average of ~61%. By comparison, peers Oasis Petroleum (OAS) and Newfield Exploration (NFX) have implied volatilities of ~58.2% and ~37.5%, respectively. These companies account for 6.3% of the Energy Select Sector SPDR ETF (XLE).

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Using implied volatility to forecast a 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 could likely close between $7.75 and $9.37 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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