Schlumberger’s implied volatility
On April 13, 2018, Schlumberger’s (SLB) implied volatility was 26.6%. Schlumberger released its 4Q17 financial results on January 19, 2018. Since that date, Schlumberger’s implied volatility has increased from 21.0% to 26.6%. Since January 19, SLB’s stock price has fallen nearly 11.0%.
Schlumberger (SLB) comprises 3.1% of the SPDR S&P Oil & Gas Equipment & Services ETF (XES). XES provides exposure to the oil and gas equipment and services segment of the energy sector. XES has decreased ~12.0% since January 19, 2018.
Schlumberger’s seven-day stock price forecast
Based on its implied volatility, Schlumberger (SLB) stock could close between $65.44 and $70.46 in the next seven days. Schlumberger’s seven-day stock price forecast considers a normal distribution of stock prices, a standard deviation of one, and a probability of 68.2%. SLB’s stock price was $67.95 on April 13, 2018.
Implied volatility for SLB’s peers
National Oilwell Varco’s (NOV) implied volatility on April 13 was 34.4%, which implies that NOV’s stock price can range from $38.97 to $42.87 in the next seven days.
Helmerich & Payne’s (HP) implied volatility was 36.9% on April 13. This implies that HP’s stock price can range from $69.31 to $76.79 in the next seven days.
McDermott International’s (MDR) implied volatility was 66.9% on April 13. This implies that MDR’s stock price can vary between $5.59 and $6.73 in the next seven days. You can read more about Schlumberger in Market Realist’s Schlumberger’s Outlook and Fundamentals in 2018.
Crude oil’s implied volatility
On April 13, 2018, crude oil’s implied volatility was 24.7%. Since January 19, crude oil’s volatility has increased. SLB’s implied volatility also increased during the same period.
Next, we’ll discuss SLB’s correlation coefficient with crude oil.