Keane Group’s implied volatility
On May 25, Keane Group’s (FRAC) implied volatility was 40.1%. On May 2, Keane Group’s first-quarter financial results came out. Since then, FRAC’s implied volatility has decreased from 44% to this level. Since May 2, FRAC’s stock price has decreased nearly 4%. FRAC is 2.4% of the SPDR S&P Oil & Gas Equipment & Services ETF (XES). XES provides exposure to the oil and gas equipment and services segment. XES has remained unchanged since May 2.
Keane Group’s seven-day stock price forecast
Implied volatility for FRAC’s peers
Precision Drilling Corporation’s (PDS) implied volatility on May 25 was 55%, which implies that PDS’s stock price could vary between $3.83 and $3.29 in the next seven days. CARBO Ceramics’ (CRR) implied volatility was 55.4% on May 25, which implies that CRR’s stock price can range between $10.53 and $9.03 in the next seven days. TechnipFMC’s (FTI) implied volatility was 30.7% on May 25, which implies FTI’s stock price can vary between $32.56 and $29.90 in the next seven days. Read more about FTI in Market Realist’s TechnipFMC’s 1Q18 Earnings Missed Analysts’ Estimates.
Crude oil’s implied volatility
On May 25, crude oil’s implied volatility was 24.3%. Since May 2, crude oil’s volatility decreased while FRAC’s implied volatility also decreased.
Next in this series, we’ll discuss FRAC’s correlation coefficient with crude oil.