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Short Interest Trends, Implied Volatility in WLL Stock

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Nov. 20 2020, Updated 12:00 p.m. ET

Short interest in Whiting Petroleum stock

On April 25, the short interest ratio (short interest as a percentage of float) for Whiting Petroleum (WLL) stock was ~21.0%. In April 2017, the short interest ratio for Whiting Petroleum stock was ~3.0%.

As we can observe in the graph above, short interest in WLL spiked in 2017, along with its stock. Following Whiting Petroleum’s one-for-four reverse stock split decision, which it had finalized in November 2017, short interest in WLL stock rose sharply that month and has remained high.

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WLL’s stock price has also displayed an uptrend since late 2017, boosted by upbeat 4Q17 earnings and strong crude oil prices (DBO)(UCO). Please read Part 1 of this series to learn about WLL’s recent stock performance. WLL’s stock price on April 25 was $40.29, compared to $33.16 in the previous year.

WLL’s 1Q18 earnings report is expected to be a key stock-mover for Whiting Petroleum in the coming weeks. Please read Whiting Petroleum’s 1Q18 Earnings: What to Expect for more information.

Implied volatility trends

Current implied volatility in Whiting Petroleum (WLL) is ~58.0%. In comparison, peers Continental Resources (CLR) and Oasis Petroleum (OAS) have implied volatilities of ~39.7% and ~56.9%, respectively. In contrast, the broader energy sector, represented by the Energy Select Sector SPDR ETF (XLE), has an implied volatility of ~20.4%.

Forecasting WLL’s stock price range

Based on Whiting Petroleum’s implied volatility of ~58.1% and assuming a normal distribution of stock prices with a standard deviation of 1.0 (or a probability of 68.0%), Whiting Petroleum stock is expected to close between $37.05 and ~$43.53 in the next seven days.

Check out the data we have added to our quote pages. Now you can get a valuation snapshot, earnings and revenue estimates, and historical data as well as dividend info.  Take a look.

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