What’s Schlumberger’s Next 7-Day Stock Price Forecast?



Schlumberger’s implied volatility

On January 2, 2018, Schlumberger’s (SLB) implied volatility was ~22%. Schlumberger’s 3Q17 earnings were announced on October 20, 2017. Since then, its implied volatility has risen from 20% to the current level. The implied volatility reflects a stock’s potential price movement, as viewed by the option traders.

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Stock price forecast 

Considering Schlumberger’s implied volatility and assuming a normal distribution of stock prices and one standard deviation probability of 68.2%, Schlumberger stock will likely close between $71.66 and $67.38 in the next seven days. Schlumberger’s stock price was $69.52 on January 2, 2018.

Past and current implied volatility

Since January 20, 2016, when Schlumberger’s implied volatility was the highest at ~43%, its implied volatility has subsided gradually. Currently, it’s lower than its average of 23.6% in the past three years. Schlumberger accounts for 6.7% of the Vanguard Energy ETF (VDE). VDE has risen 42% since January 20, 2016—compared to a 14% rise in Schlumberger’s stock price during this period.

Implied volatility compared to its peers

On January 2, 2018, Weatherford International’s (WFT) implied volatility was ~64%. It implies that Weatherford’s stock price could range between $3.86 and $3.22 in the next seven days. Helmerich & Payne’s (HP) implied volatility was ~33% on the same day. It implies that Helmerich & Payne’s stock price could range between $68.98 and $63.00 in the next seven days. Helix Energy Solutions’ (HLX) implied volatility was ~46% on January 2, 2018. Its stock price could range between $8.37 and $7.37 in the next seven days. On January 2, 2018, crude oil’s implied volatility was ~18%. Since September 29, 2017, Schlumberger’s implied volatility has increased, while crude oil’s implied volatility has decreased.

Next, we’ll discuss investors’ bearishness 0n Schlumberger stock.


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