Apache’s implied volatility
Stock price forecasts
Apache’s implied volatility of ~33% can be used to forecast its stock range in the next three months. Assuming a normal distribution of prices with one standard deviation, Apache stock will likely close between $41.15 and $45.13 in the next three months. The stock will probably stay in this range 68% of the time. APA stock is currently trading at $43.14.
In comparison, APA’s peer Hess Corporation’s (HES) stock is expected to range between $61.62 and $67.52 based on implied volatility of ~33% in the same period.
Concho Resources (CXO) has a forecasted stock range of $121.51 and $133.21 based on implied volatility of 33.5% in the three months leading to September. In the same period, Continental Resources (CLR) will likely close between $63.13 and $69.27 based on 33.16% implied volatility.
In the next article, we’ll discuss analysts’ opinions about Apache.