uploads/2018/05/IV-13.png

Forecasting CHK’s Stock Price Based on Its Implied Volatility

By

Updated

Implied volatility

Chesapeake Energy (CHK) stock’s implied volatility is ~71%. In comparison, peers Noble Energy (NBL) and EQT (EQT) have lower implied volatility, of ~31% and ~33.4%, respectively. Meanwhile, the Energy Select Sector SPDR ETF’s (XLE) implied volatility is ~19%.

Article continues below advertisement

Stock price forecast

Assuming a normal distribution of stock prices with a standard deviation of one, based on Chesapeake Energy’s implied volatility of ~71%, we can estimate that the stock could close anywhere between $3.88 and $5.06 in the next seven days and stay within this range ~68% of the time. In the next part, we’ll look at analysts’ recommendations for Chesapeake Energy stock.

Advertisement

More From Market Realist