Schlumberger’s implied volatility
On February 23, 2018, Schlumberger’s (SLB) implied volatility was 24.5% compared to 21% on January 19, 2018, when it released its 4Q17 financial results. SLB stock has fallen nearly 13% in that same period. SLB makes up 3.6% of the SPDR S&P Oil & Gas Equipment & Services ETF (XES), which has fallen ~15% since January 19, 2018.
Schlumberger’s 7-day stock price forecast
Schlumberger stock could close between $68.76 and $64.24 in the next seven days, based on its implied volatility. Its 7-day stock price forecast considers a normal distribution of stock prices and one standard deviation probability of 68.2%. The price of SLB stock was $66.50 on February 23, 2018.
Implied volatility for SLB’s peers
National Oilwell Varco’s (NOV) implied volatility on February 23, 2018, was 28.4%, which implies that NOV stock could vary from $37.49 to $34.65 in the next seven days. Helmerich & Payne’s (HP) implied volatility was 28.5% on February 23. That implies that HP stock could be between $69.50 and $64.22 in the next seven days. Tidewater’s (TDW) implied volatility was 41.5% on February 23. That implies that TDW stock could be between $27.48 and $24.50 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 23, 2018, crude oil’s implied volatility was 21.5%. Since January 19, 2018, crude oil’s volatility has increased. SLB’s implied volatility also increased during that period.
Next, we’ll take a look at SLB’s correlation coefficient with crude oil.