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Weatherford’s 7-Day Stock Price Forecast on August 4

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Aug. 7 2017, Published 4:31 p.m. ET

Weatherford’s implied volatility

On August 4, 2017, Weatherford International’s (WFT) implied volatility was 53.5%. Its 2Q17 financial results were announced on July 28, 2017. Since then, Weatherford’s implied volatility has fallen from 62.5% to ~54%. Weatherford accounts for 3.4% of the SPDR S&P Oil & Gas Equipment & Services ETF (XES). XES has fallen 15% in the past year—compared to a 19% fall in Weatherford’s stock price.

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Weatherford’s seven-day stock price forecast

Weatherford stock will likely close between $4.67 and $4.03 in the next seven days—based on Weatherford International’s implied volatility and assuming a normal distribution of stock prices and one standard deviation probability of 68.2%. Weatherford’s stock price was $4.35 on August 4, 2017.

Implied volatility for Weatherford’s peers on August 4

On August 4, Helmerich & Payne’s (HP) implied volatility was 32.5%, while Halliburton’s (HAL) implied volatility was ~25%. On August 4, Helix Energy Solutions’ (HLX) implied volatility was 59.3%.

Crude oil’s implied volatility

On August 4, 2017, crude oil’s implied volatility was 26.4%. Since June 30, 2017, Weatherford’s implied volatility has fallen sharply from ~81% to ~54%. Crude oil’s volatility also fell during the same period. The SPX-INDEX has risen 13% in the past year—compared to a 19% fall in Weatherford’s stock price. The energy sector accounts for 6.0% of SPX-INDEX.

Next, w’ll discuss investors’ short interest in Weatherford.

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