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SLB and HAL: Which Has Higher Implied Volatility?

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SLB’s implied volatility in context

On December 31, 2018, Schlumberger’s (SLB) implied volatility was 22.6%. Since December 31, 2017, its implied volatility has increased from 21.4% to the current level. Implied volatility (or IV) shows a stock’s potential movement from the perspective of option traders. IV is calculated based on an option pricing model. From December 31, 2017, to December 31, 2018, crude oil’s implied volatility has increased from 17.6% to 19.9%.

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Schlumberger’s seven-day stock price forecast

HAL’s implied volatility in context

On December 31, 2018, Halliburton’s (HAL) implied volatility was ~26.1%. Since December 31, 2017, its implied volatility has increased from 24.5% to the current level. HAL makes up 2.8% of the Vanguard Energy ETF (VDE). VDE has increased 1% since December 31, 2017, compared to a 4% fall in HAL’s stock price during this period.

Halliburton’s seven-day stock price forecast

Halliburton’s stock will likely close between $55.64 and $51.76 in the next seven days based on its implied volatility. Halliburton’s seven-day stock price forecast is based on normal distribution of stock prices and one standard deviation probability of 68.2%. HAL’s stock price was $53.70 on January 31, 2018.

Next, we will discuss Wall Street analysts’ targets for these OFS companies.

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