Schlumberger’s implied volatility
On February 2, 2018, Schlumberger’s (SLB) implied volatility was 26.9%, which compares to 21% when it released its 4Q17 financial results on January 19, 2018. SLB makes up 3.5% of the SPDR S&P Oil & Gas Equipment & Services ETF (XES), which has fallen 2% since January 19, 2018.
Schlumberger’s 7-day stock price forecast
Schlumberger stock will likely close between $76.43 and $70.95 in the next seven days, based on its implied volatility. Its seven-day stock price forecast considers a normal distribution of stock prices and one standard deviation probability of 68.2%. SLB stock was trading at $73.69 on February 2, 2018.
Implied volatility for SLB’s peers
National Oilwell Varco’s (NOV) implied volatility on February 2, 2018, was 35%, which implies that it could vary between $37.40 and $33.98 in the next seven days. Helmerich & Payne’s (HP) implied volatility was 32% on January 26, 2018. That implies that HP stock could be between $73.23 and $66.99 in the next seven days. Tidewater’s (TDW) implied volatility was 44.5% on February 2. That implies that TDW stock could vary between $28.82 and $25.48 in the next seven days. You can read more about Schlumberger in Market Realist’s Schlumberger: What to Expect after Strong 4Q17 Earnings.
Crude oil’s implied volatility
On February 2, 2018, crude oil’s implied volatility was 19.2%. Since January 19, 2018, crude oil’s volatility increased, and so did SLB’s implied volatility.
Next, we’ll take a look at SLB’s correlation coefficient with crude oil.