uploads/2017/11/IV-10.jpg

What We Can Forecast for TechnipFMC Next Week

By

Updated

TechnipFMC’s implied volatility

On November 9, TechnipFMC’s (FTI) implied volatility was 31.5%. Since FTI’s 3Q17 financial results were announced on October 25, its implied volatility has fallen marginally. TechnipFMC is 0.14% of the iShares Dow Jones US ETF (IYY). IYY has risen 1% since October 25, versus a ~15% increase in FTI’s stock price during the same period.

Forecast for TechnipFMC

Based on TechnipFMC’s implied volatility, and assuming a normal distribution of stock prices and one standard deviation probability of 68.2%, FTI’s stock will likely close between $30.64 and $28.08 in the next seven days. FTI’s stock price was $31.46 on November 9.

Implied volatility for FTI’s peers

McDermott International’s (MDR) implied volatility on November 9 was ~33%, which implies that MDR’s stock can close between $8.01 and $7.31 in the next seven days. CARBO Ceramics’ (CRR) implied volatility was ~67% on November 9, which implies that CRR’s stock can close between $10.00 and $8.30 in the next seven days. Flotek Industries’ (FTK) implied volatility on November 9 was ~65%, which implies that FTK’s stock could close between $5.25 and $4.39 in the next seven days.

What’s FTI’s correlation with crude oil prices? Find out in the next part of this series.

More From Market Realist