EQT’s implied volatility
The current implied volatility of EQT Corporation (EQT) stock is ~30%. While EQT’s peer Cabot Oil and Gas (COG) has a lower implied volatility of 27.3%, Chesapeake Energy (CHK) has a higher implied volatility of 61.3%.
By comparison, the Energy Select Sector SPDR ETF (XLE) has an implied volatility of ~17.4%.
Forecasting stock price range
Based on EQT’s implied volatility of ~30% and assuming a normal distribution of stock prices with one standard deviation (probability of 68%), we can estimate that in the next three months, EQT stock could close between $44.93 and $60.39.
In the next and final part of this series, we will look at short interest trends in EQT Corporation stock.