EOG Resources’ implied volatility
On July 24, EOG Resources (EOG) had an implied volatility of ~26.4%, lower than its implied volatility of ~27.5% at the end of the second quarter.
EOG’s price range forecast
EOG Resources is expected to report its second-quarter earnings after the market closes on August 2. Based on EOG Resources’ implied volatility of ~26.4%, assuming a normal distribution of prices, 365 days in a year, and a standard deviation of one, its stock could close between $130.83 and $120.41 by August 2. EOG stock is expected to stay in this range 68% of the time. On July 24, EOG’s stock price closed at $125.62.
Peers’ price range forecasts
On July 24, ConocoPhillips (COP) had an implied volatility of ~25.0%, which means its stock is expected to close between $73.63 and $68.07 by August 2. On July 24, COP’s stock price closed at $70.85. COP has operations in international locations as well as in the United States. However, COP is focused more on unconventional resources in the United States.
On July 24, the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) had an implied volatility of ~25.4%, which means XOP is expected to close between $44.39 and $40.99 by August 2. On July 24, XOP’s price closed at $42.69. XOP represents an index of stocks across the energy industry. It has ~81% exposure to the oil and gas exploration and production industry.
On July 24, California Resources (CRC) and Southwestern Energy (SWN) had implied volatilities of ~89.3% and ~52.1%, respectively. By August 2, these stocks are expected to close in the ranges of $45.02–$33.94 and $5.72–$4.86, respectively.
Based on the inputs used in the calculation of price range, there’s a 68% probability that these stocks will close in their ranges in the given period.