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Halliburton’s Next 7-Day Stock Price Forecast

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Feb. 12 2018, Published 3:12 p.m. ET

Halliburton’s implied volatility

Halliburton’s (HAL) implied volatility was 34.9% on February 9, 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 3.5% of the SPDR S&P Oil & Gas Equipment & Services ETF (XES). XES decreased 36% in the past year—compared to a 16% fall in Halliburton’s stock price during the same period. 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 $48.96 and $44.44 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 $46.70 on February 9.

Implied volatility for Halliburton’s peers       

On February 9, TechnipFMC’s (FTI) implied volatility was ~46%. TechnipFMC’s stock price could vary between $31.00 and $27.28 in the next seven days. McDermott International’s (MDR) implied volatility was ~55% on February 9. McDermott International’s stock price could range between $7.99 and $6.85 in the next seven days. CARBO Ceramics’ (CRR) implied volatility was ~67% on February 9. CARBO Ceramics’ stock price could vary between $7.92 and $6.58 in the next seven days.

Crude oil’s implied volatility

On February 9, crude oil’s implied volatility was 26.8%. Since January 22, 2018, crude oil’s volatility has increased. Halliburton’s implied volatility increased during the same period.

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

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