Schlumberger’s implied volatility
On August 4, 2017, Schlumberger’s (SLB) implied volatility was 17.9%. Since its 2Q17 financial results were announced on July 21, Schlumberger’s implied volatility has decreased from 19% to the current level. SLB makes up 3.4% of the SPDR S&P Oil & Gas Equipment & Services ETF (XES). XES decreased 15% in the past year versus a 17% decline in SLB’s stock price. Implied volatility (or IV) reflects a stock’s potential price movement from investors’ perspective.
Schlumberger’s 7-day stock price forecast
Schlumberger’s 7-day stock price forecast is based on normal distribution of stock prices and one standard deviation probability of 68.2%. Schlumberger’s stock will likely close between $69.21 and $65.87 in the next seven days based on its implied volatility. SLB’s stock price was $67.54 on August 4, 2017.
Implied volatility for SLB’s peers
Crude oil’s implied volatility
On August 4, crude oil’s implied volatility was 26.4%. Since July 21, crude oil’s volatility decreased, just as SLB’s implied volatility also decreased during the same period. Since July 21, the S&P 500 Index (SPX-INDEX) has remained unchanged. The energy sector makes up 6.0% of the SPX-INDEX.
Next, we will discuss investors’ short interest in Schlumberger.