Schlumberger’s implied volatility
On April 20, Schlumberger’s (SLB) 1Q18 financial results were released, and its implied volatility was 24.1%. It fell to 21.5% by April 27, and its stock price fell 0.2%. SLB comprises 3.0% of the SPDR S&P Oil & Gas Equipment & Services ETF (XES), which provides exposure to the oil and gas equipment and service segment of the energy sector. XES rose 2% between April 20 and April 27.
Schlumberger’s seven-day stock price forecast
Schlumberger stock will likely close between $71.13 and $67.03 in the next seven days, based on its implied volatility. Schlumberger’s seven-day stock price forecast considers a normal distribution, standard deviation of one, and probability of 68.2%. SLB’s stock price was $69.08 on April 27.
Implied volatility and forecasts for SLB’s peers
- National Oilwell Varco’s (NOV) implied volatility on April 27 was 29.7%, implying its stock price could be $40.46–$37.26 in the next seven days.
- Helmerich & Payne’s (HP) implied volatility was 28.8% on April 27, implying its stock price could be $73.17 –$67.57 in the next seven days.
- McDermott International’s (MDR) implied volatility was 88.9% on April 27, implying its stock price could be $7.74–$6.04 in the next seven days.
Crude oil’s implied volatility
Like SLB’s implied volatility, between April 20 and April 27, crude oil’s implied volatility fell, to 23.7%. For more about Schlumberger, read Market Realist’s Analyzing Schlumberger’s Revenue and Earnings in 1Q18. Next, we’ll discuss SLB’s correlation with crude oil.