uploads///Volatility

How Volatile Is Patterson-UTI Energy after 2Q16?

Alex Chamberlin - Author
By

Aug. 30 2016, Updated 9:04 a.m. ET

Patterson-UTI Energy’ implied volatility

On August 19, 2016, Patterson-UTI Energy (PTEN) had an implied volatility of ~40%. Since PTEN’s 2Q16 financial results were announced on July 28, 2016, its implied volatility decreased from ~45% to the current level. Notably, PTEN makes up only 0.01% of the iShares Dow Jones US ETF (IYY), while the energy sector makes up 6.7% of IYY.

Article continues below advertisement

What does IV mean?

IV (implied volatility) reflects investors’ views of a stock’s potential movement. However, IV does not forecast direction. Implied volatility is derived from an option pricing model. Investors should note that the correctness of the implied volatility of suggested prices can be uncertain. Notably, Helix Energy Solutions Group’s (HLX) volatility on August 19 was ~71%—significantly higher than PTEN’s.

In the next and final part, we’ll discuss PTEN’s returns and analyze its strategies.

Advertisement

Latest Helix Energy Solutions Group Inc News and Updates

    © Copyright 2022 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.