Whiting Petroleum’s implied volatility
As of July 7, 2017, Whiting Petroleum (WLL) had an implied volatility of ~85%, which is 6% higher than its 15-day average of 80.3%.
WLL’s stock price forecast using implied volatility
Based on WLL’s implied volatility and assuming a normal distribution of stock prices with a standard deviation of one, Whiting Petroleum’s stock will likely close between $4.40 and $5.56 in the next seven days. As per our assumptions, the stock is likely to stay in this range ~68% of the time.
Implied volatilities of WLL’s peers
In comparison, Whiting’s peers Oasis Petroleum (OAS) and Concho Resources (CXO) have implied volatilities of ~68% and ~31%, respectively. The Energy Select Sector SPDR ETF (XLE), in contrast, has implied volatility of ~18.5%.
Implied volatility is a forward-looking estimation of a stock’s volatility. Implied volatility usually increases in a bearish market and decreases in a bullish market.
Next, we’ll look at analysts’ opinions on Whiting Petroleum for the next 12 months.