In the week ending on September 22, Chesapeake Energy (NASDAQ:$CHK) saw a 5.5% increase in stock, sustaining its upward trend. But, in the bigger picture, Chesapeake Energy stock has fallen 39% since the beginning of the year.

The uptick in Chesapeake’s stock price can be attributed to recovering crude oil prices, which have risen to their highest levels in four months, at $50.66 per barrel on September 22, 2017. This number is extremely vital to Chesapeake’s growth factor, as the company hopes to increase oil-weighted production in 2017.

To put it into perspective, on July 31st, 2017, per barrel prices sat at $50.17, only to fall back to sub-$50 the next day. Since September 20th, crude prices have closed well above $50.00 for three consecutive days. As of September 25th, the price rose to $52.00 per barrel.

Chesapeake Energy’s current implied volatility is around 45.3%, 12.0% lower than its 15-day average. By comparison, its competitors Cabot Oil & Gas (NASDAQ:$COG) and EQT (NASDAQ:$EQT) are sitting at 28.0% and 27.0%, respectively.

Based on Chesapeake’s implied volatility of around 45% while assuming a normal price distribution of prices at a 1 standard deviation, we can expect Chesapeake stock to stay within the 68% range in the next 7 days.

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