Nabors Industries’ implied volatility
On February 12, 2018, Nabors Industries’ (NBR) implied volatility was 69.5%. Since February 13, 2017, NBR’s implied volatility increased from 43.3% to the current level.
On October 24, 2017, Nabors Industries’ 3Q17 financial results were released. Since then, Nabors Industries’s implied volatility has increased from 62.0% to this level. Since October 24, 2017, NBR’s stock price has increased nearly 3.0%.
NBR comprises 3.8% of the SPDR S&P Oil & Gas Equipment & Services ETF (XES). XES has risen ~1.0% since October 24, 2017.
Nabors Industries’ seven-day stock price forecast
Nabors Industries (NB) stock will likely close between $5.97 and $7.25 in the next seven days, based on its implied volatility. Nabors Industries’s seven-day stock price forecast considers a normal distribution of stock prices and a one standard deviation probability of 68.2%. NBR’s stock price was $6.61 on February 12, 2018.
Implied volatility for NBR’s peers
Weatherford International’s (WFT) implied volatility on February 12 was 72.2%, which implies that its stock price can vary between $2.57 and $3.15 in the next seven days. You can read more about WFT in Market Realist’s Weatherford International: 4Q17 Earnings Overview.
Precision Drilling Corporation’s (PDS) implied volatility was ~54.0% on February 12. This implies PDS’s stock price can range between $3.05 and $3.55 in the next seven days.
McDermott International’s (MDR) implied volatility was 57.0% on February 12. This implies that MDR’s stock price can vary between $7.08 and $8.28 in the next seven days.
Crude oil’s implied volatility
On February 12, crude oil’s implied volatility was 26.8%. Since October 24, 2017, crude oil’s volatility increased, while NBR’s implied volatility also increased during the same period.
Next, we’ll discuss NBR’s correlation coefficient with crude oil.