EQT’s implied volatility
EQT’s (EQT) current implied volatility is ~31%. While EQT’s peer Cabot Oil and Gas (COG) has a lower implied volatility of 28.2%, Chesapeake Energy (CHK) has a higher implied volatility of 49%. In comparison, the Energy Select Sector SPDR ETF (XLE) has an implied volatility of ~14.4%.
Forecasting stock price range
Based on EQT’s implied volatility of ~31%, and assuming a normal distribution of stock prices with one standard deviation (probability of 68%), we can forecast that in the next seven days, EQT stock could close between $54.72 and $59.60.
Finally, we’ll look at analysts’ recommendations for EQT Corporation in the next part of this series.