Is Helmerich & Payne’s Implied Volatility Decreasing?

Implied volatility (or IV) 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 an implied volatility suggests that prices can be uncertain. Helix Energy Solutions Group’s (HLX) implied volatility on September 9 was 72%—much higher than HP’s.

Energy stocks are typically correlated with crude oil price. Has HP’s correlation with the crude oil price increased? Let’s find this out in the next part of the series.