uploads///IV

What’s Halliburton’s Stock Price Forecast for the Next 7 Days?

By

Apr. 2 2018, Published 8:07 a.m. ET

Halliburton’s implied volatility

Halliburton’s (HAL) implied volatility was ~31% on March 29, 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. HAL makes up 3.5% 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 fallen 23% since January 22 versus a 17% fall in HAL’s stock price during the same period. Implied volatility (or IV) signals a stock’s potential price movement, as viewed by the option holders.

Article continues below advertisement

Halliburton’s seven-day stock price forecast

Halliburton’s stock will likely close between $48.95 and $44.93 in the next seven days based on its implied volatility. Halliburton’s seven-day stock price forecast is based on normal distribution of stock prices and one standard deviation probability of 68.2%. HAL’s stock price was $46.94 on March 29.

Implied volatility for HAL’s peers

TechnipFMC’s (FTI) implied volatility on March 29 was 36.4%, which implies FTI’s stock price can vary between $30.94 and $27.96 in the next seven days. McDermott International’s (MDR) implied volatility was 58% on March 29, which implies MDR’s stock price could range between $6.58 and $5.60 in the next seven days. Weatherford International’s (WFT) implied volatility was ~74% on March 29, which implies WFT’s stock price can vary between $2.53 and $2.05 in the next seven days.

Crude oil’s implied volatility

On March 29, crude oil’s implied volatility was 22.5%. Since January 22, 2018, crude oil’s volatility has increased, while HAL’s implied volatility also increased during the same period.

Next, we will discuss crude oil’s correlation with HAL.

Advertisement

More From Market Realist

  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.