Implied Volatility in Whiting Petroleum: Forecasting Stock Range

Current implied volatility in Whiting Petroleum (WLL) is ~49.9%, 0.20% higher than its 15-day average of 49.8%. In contrast, the broader energy sector represented by the Energy Select Sector SPDR ETF (XLE) has an implied volatility of ~17.4%, -4.8% lower than its 15-day average of ~18.3%. Based on Whiting Petroleum’s implied volatility of ~49.9% 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 $50.0 and ~$57.24 by the end of the week leading up to June 18.