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Forecasting Anadarko Petroleum’s Stock Price for the next 7 Days

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Anadarko’s implied volatility

As we saw in the previous part, Anadarko Petroleum’s (APC) implied volatility is ~27%. In this part, we’ll try to forecast a price range for Anadarko stock in the next seven days, using Anadarko’s implied volatility.

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Forecasting Anadarko’s stock price range

Using Anadarko Petroleum’s implied volatility, and assuming a normal distribution of stock prices and a standard deviation of 1, or a probability of 68.2%, Anadarko stock could close between $46.50 and $50.11 in the next week. For more about Anadarko’s recent stock performance, refer to Part 11 of this series.

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