Whiting Petroleum’s implied volatility
Currently, Whiting Petroleum (WLL) has an implied volatility of ~66%, which is 4.8% lower than its 15-day average of ~69%.
Whiting Petroleum’s peers Anadarko Petroleum (APC) and Concho Resources (CXO) have relatively low implied volatilities of ~28.2% and ~27.2%, respectively. In comparison, the broader energy sector or the Energy Select Sector SPDR ETF has an implied volatility of 14.3%.
WLL’s implied-volatility-based stock price range forecast
Based on WLL’s implied volatility and assuming a normal distribution of stock prices with one standard deviation (probability of 68%), WLL’s stock will likely close between $4.00 and $4.83 in the next seven days.
In the next part of this series, we’ll look at analysts’ price targets for WLL for the next 12 months.