Whiting Petroleum’s Stock Range Forecast Using Implied Volatility

Current implied volatility in Whiting Petroleum (WLL) is ~45.3%. In contrast, the broader energy sector represented by the Energy Select Sector SPDR ETF (XLE) has an implied volatility of ~16.6%. Based on Whiting Petroleum’s implied volatility of ~45.3% and assuming a normal distribution of stock prices with a standard deviation of one (with a probability of 68.0%), Whiting Petroleum stock will likely close between $49.88 and ~$56.56 in the next seven days.