Baker Hughes: What Implied Volatility Shows for Its 7-Day Price

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).

On March 8, Helmerich & Payne’s (HP) implied volatility was ~30%, while Helix Energy Solutions’ (HLX) implied volatility was ~59%. On the same day, CARBO Ceramics’ (CRR) implied volatility was ~59%.

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.