Schlumberger’s implied volatility
On February 9, 2018, Schlumberger’s (SLB) implied volatility was 35%. On January 19, 2018, Schlumberger’s 4Q17 financial results were released. Since then, Schlumberger’s implied volatility has risen from 21% to this level. Since January 19, SLB’s stock price has fallen nearly 15%. SLB makes up 3.4% of the SPDR S&P Oil & Gas Equipment & Services ETF (XES). XES has fallen ~20% since January 19, 2018.
Schlumberger’s seven-day stock price forecast
Implied volatility for SLB’s peers
National Oilwell Varco’s (NOV) implied volatility on February 9 was 41.6%, which implies NOV’s stock price can vary between $35.00 and $31.18 in the next seven days. Helmerich & Payne’s (HP) implied volatility was ~40% on February 9, which implies HP’s stock price can range between $67.17 and $60.07 in the next seven days. Tidewater’s (TDW) implied volatility was 48.2% on February 9. This implies TDW’s stock price can vary between $27.21 and $23.8 in the next seven days. Read more about Schlumberger in Market Realist’s Schlumberger: What to Expect after Strong 4Q17 Earnings.
Crude oil’s implied volatility
On February 9, crude oil’s implied volatility was 26.8%. Since January 19, 2018, crude oil’s volatility has increased, while SLB’s implied volatility also increased during the same period.
Next, we’ll discuss SLB’s correlation coefficient with crude oil.