X
<

What Did the Market Suggest about Weatherford on September 29?

PART:
1 2 3
Part 2
What Did the Market Suggest about Weatherford on September 29? PART 2 OF 3

Assessing Weatherford’s Stock Price Forecast for the Next 7 Days

Weatherford’s implied volatility

On September 29, 2017, Weatherford International’s (WFT) implied volatility (or IV) was ~52%. WFT’s 2Q17 financial results were released on July 28. Since that date, Weatherford’s IV has decreased from 62% to the current level.

Since July 28, WFT’s stock price has risen 7%. WFT comprises 3.3% of the SPDR S&P Oil & Gas Equipment & Services ETF (XES). XES has increased 7% since July 28.

Assessing Weatherford’s Stock Price Forecast for the Next 7 Days

Interested in WFT? Don't miss the next report.

Receive e-mail alerts for new research on WFT

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

Weatherford’s seven-day stock price forecast

WFT stock could close between $4.25 and $4.91 in the next seven days. This estimate is based on Weatherford International’s implied volatility, assuming a normal distribution of stock prices, a standard deviation of 1, and a probability of 68.2%. WFT’s stock price was $4.58 on September 29, 2017.

Implied volatility for WFT’s peers on September 29

Implied volatility signals a stock’s potential price movement, as viewed by options traders. McDermott International’s (MDR) implied volatility on September 29 was 40.8%, which suggests that MDR’s stock price could vary between $6.86 and $7.68 in the next seven days.

TechnipFMC’s (FTI) implied volatility was 26.7% on September 29. TechnipFMC’s stock price can vary between $26.89 and $28.95 in the next seven days.

Crude oil’s implied volatility

On September 29, 2017, crude oil’s implied volatility was 24.5%. Since June 30, 2017, WFT’s implied volatility has decreased sharply from ~81% to ~52%. During the same period, crude oil’s implied volatility has decreased from 27% to the current level.

The S&P 500 Index (SPX-INDEX) has increased 4% since June 30, 2017. The energy sector accounts for 5.7% of SPX-INDEX.

In the final part of this series, we’ll discuss Weatherford International’s correlation with crude oil prices.

X

Please select a profession that best describes you: