Implied volatility trends
The current implied volatility in Whiting Petroleum (WLL) is ~61%. In comparison, peers Continental Resources (CLR) and Oasis Petroleum (OAS) have implied volatilities of ~41.5% and ~54.3%, respectively. In contrast, the broader energy sector, represented by the Energy Select Sector SPDR ETF (XLE), has an implied volatility of ~22.4%.
Forecasting WLL’s stock price range
Based on Whiting Petroleum’s implied volatility of ~61%, 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 $33.93 and ~$40.15 in the next seven days. Next, in this series, we’ll discuss analysts’ opinions about Whiting Petroleum in the next 12 months.