Implied volatility trends
Current implied volatility in Whiting Petroleum (WLL) is ~55.2%. In comparison, peers Oasis Petroleum (OAS) and Continental Resources (CLR) have implied volatilities of ~57.7% and ~36.0%, respectively. In comparison, the broader energy sector, represented by the Energy Select Sector SPDR ETF (XLE), has an implied volatility of ~19.2%.
Forecasting WLL’s stock price range
Based on Whiting Petroleum’s implied volatility of ~55.2%, and assuming a normal distribution of stock prices with a standard deviation of one (or a probability of 68.0%), Whiting Petroleum stock will likely close between $26.81 and $31.25 in the next seven days. Next, in this series, we’ll discuss analysts’ opinions about Whiting Petroleum in the next 12 months.