Marathon Oil’s Possible Trading Range for Thanksgiving Week
As of November 17, 2017, Marathon Oil (MRO) had an implied volatility of ~34.74%, which is higher than its implied volatility of ~32.98% at the end of 3Q17.
For the week ending November 17, Marathon Oil stock had the highest correlation of ~97% with natural gas (UNG).
For the week ending November 17, 2017, Marathon Oil’s (MRO) stock price fell 3.34% or from $15.62 to $15.05.
Between November 10, 2017, and November 17, 2017, Weatherford International’s (WFT) correlation with West Texas Intermediate (or WTI) crude oil prices was -0.34.
On November 17, 2017, Weatherford International’s (WFT) implied volatility was ~58.0%.
Weatherford International (WFT) stock fell 16.0% in the week ended November 17, 2017. The VanEck Vectors Oil Services ETF (OIH) generated a return of -6.0% during this period.
The correlation coefficient between crude oil prices and Nabors Industries’ (NBR) stock price from November 16, 2016, to November 16, 2017, was 0.61.
On November 16, Nabors Industries’ (NBR) implied volatility was ~66%. Since NBR’s 3Q17 financial results were announced on October 24, its implied volatility has risen from 62.5%.
Short interest in Nabors Industries (NBR) as a percentage of its float was 14.9% as of November 16, compared to 10.4% as of September 29.
As you can see in the table below, Baker Hughes, a GE Company (BHGE), is the largest company by market capitalization.
On September 29, Nabors Industries’ (NBR) stock price was 51% lower than on December 30, 2016. In 3Q17, NBR’s adjusted earnings were negative.
Nabors Industries’ (NBR) one-year stock price was down 58% as of November 16. We discussed Nabors Industries’ value drivers in Will Nabors Industries’ Weak Run Continue? The Energy Select Sector SPDR…
On November 17, 2017, the implied volatility in XLU was 11.5%. Its current implied volatility is marginally higher than its 15-day average of 11%.
On November 17, 2017, the Utilities Select Sector SPDR ETF (XLU) was trading 2% and 5% above its 50-day and 200-day moving average levels, respectively.
On November 15, 2017, the short interest as a percentage of float (or short interest ratio) in Apache stock was ~7.1%, compared with 5.4% in January 2017.
Apache’s current implied volatility is now ~34.6%. This figure is ~6.3% higher than its 15-day average of ~32.5%.
On a YTD (year-to-date) basis, Apache (APA) stock has fallen ~36%. The downtrend in Apache’s stock price had been due to lower crude oil prices.
Schlumberger’s (SLB) correlation with crude oil from November 10–17, 2017, was 0.67. Its correlation with the Dow Jones Industrial Average for the same period was 0.72.
Schlumberger (SLB) released its 3Q17 financial results on October 20, 2017. Since then, its implied volatility has fallen marginally from 20% to 19.2%.
Schlumberger’s (SLB) one-week return was -6% through November 17, 2017. In this series, we’ll look at Schlumberger and its correlation with crude oil.