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Weatherford’s Stock Price Forecast for the Next 7 Days

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Nov. 20 2020, Updated 11:52 a.m. ET

Weatherford’s implied volatility

On January 5, 2018, Weatherford International’s (WFT) implied volatility was ~63.5%. Weatherford released its 3Q17 financial results on November 1. Since November 1, 2017, Weatherford’s implied volatility has risen from 54% to the current level. Since November 1, 2017, Weatherford’s stock price has risen 5%. Weatherford accounts for 3.4% of the SPDR S&P Oil & Gas Equipment & Services ETF (XES). XES has risen 17% since November 1, 2017.

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Weatherford’s seven-day stock price forecast

Weatherford stock will likely close between $4.21 and $3.53 in the next seven days. The estimate assumes Weatherford’s implied volatility, a normal distribution of stock prices, and one standard deviation probability of 68.2%. Weatherford’s stock price was $3.87 on January 5, 2018.

Implied volatility for Weatherford’s peers

The implied volatility indicates a stock’s potential price movement, as viewed by option traders. On January 5, McDermott International’s (MDR) implied volatility was 42%, which implies that its price could vary between $7.60 and $6.94 in the next seven days. TechnipFMC’s (FTI) implied volatility was 28% on January 5. TechnipFMC’s stock price could vary between $33.77 and $31.21 in the next seven days. To learn more, read TechnipFMC: What Worked and What Did Not in 3Q17.

Crude oil’s implied volatility

On January 5, 2018, crude oil’s implied volatility was 17.3%. Since September 29, 2017, crude oil’s implied volatility has fallen. Since September 29, 2017, Weatherford’s implied volatility has risen from ~52% to ~64%. The S&P 500 Index (SPX-INDEX) has risen 6% since September 29, 2017. The energy sector accounts for 6.1% of the S&P 500 Index.

Next, we’ll discuss Weatherford’s correlation with crude oil prices.

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