Baker Hughes’s implied volatility
On March 8, 2017, Baker Hughes’s (BHI) implied volatility was ~23.6%. Since the U.S. Department of Justice’s second information request was announced on March 6, Baker Hughes’s implied volatility has risen from 22% to the current level. Baker Hughes accounts for 3.4% of the SPDR S&P Oil & Gas Equipment & Services ETF (XES).
Implied volatility for Baker Hughes’s peers
What does implied volatility suggest for Baker Hughes’s price?
Based on Baker Hughes’s implied volatility and assuming a normal distribution of stock prices and one standard deviation probability of 68.2%, Baker Hughes stock will likely close between $59.60 and $55.82 in the next seven days. Baker Hughes’s stock price was $57.71 on March 8, 2017.