uploads/2018/02/IV-10.png

Implied Volatility in APA Stock: Forecasting Its Stock Price Range

By

Updated

Apache’s implied volatility

The current implied volatility in Apache stock (APA) is ~50.5%, which is 1.2% higher than its 15-day average of ~31.3%.

Among Apache’s peers, Concho Resources (CXO) and Continental Resources (CLR) have implied volatilities of ~35.3% and ~42.91%, respectively.

Article continues below advertisement

Stock price forecasts

Apache’s implied volatility of ~50.5% can be used to forecast its stock range in the next seven days. Assuming a normal distribution of prices with one standard deviation, Apache stock could close between $35.45 and $40.77 in the next seven days. The stock could stay in this range 68.0% of the time. 

For more insights on Apache, please read Alpine High: The Motor Driving Apache’s Permian Growth Engine?

Advertisement

More From Market Realist