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Halliburton’s Next 7-Day Stock Price Forecast

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Halliburton’s implied volatility

Halliburton’s (HAL) implied volatility was 29.5% on February 2, 2018. On January 22, 2018, the day Halliburton released its 4Q17 earnings, its implied volatility was 23%. Since then, Halliburton’s implied volatility has increased. Halliburton accounts for 3.6% of the SPDR S&P Oil & Gas Equipment & Services ETF (XES). XES decreased 26% in the past year—compared to an 8% fall in Halliburton’s stock price during the same period. The implied volatility signals a stock’s potential price movement, as viewed by the option holders.

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Halliburton’s seven-day stock price forecast

Halliburton stock will likely close between $54.32 and $50.06 in the next seven days—based on its implied volatility. Halliburton’s seven-day stock price forecast is based on a normal distribution of stock prices and one standard deviation probability of 68.2%. Halliburton’s stock price was $52.19 on February 2.

Implied volatility for Halliburton’s peers       

On February 2, TechnipFMC’s (FTI) implied volatility was ~35%, which implies that its stock price could vary between $34.26 and $31.10 in the next seven days. McDermott International’s (MDR) implied volatility was ~51% on February 2. McDermott International’s stock price could range between $8.83 and $7.67 in the next seven days. CARBO Ceramics’ (CRR) implied volatility was ~67% on February 2. CARBO Ceramics’ stock price could vary between $8.12 and $6.74 in the next seven days.

Crude oil’s implied volatility

On February 2, crude oil’s implied volatility was 19.2%. Since January 22, 2018, crude oil’s volatility has remained nearly unchanged, while Halliburton’s implied volatility increased during the same period.

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

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