Schlumberger’s implied volatility
On May 18, Schlumberger’s (SLB) implied volatility was 19.9%. Schlumberger released its first-quarter financial results on April 20. Since then, Schlumberger’s implied volatility has fallen from 24.1% to this level. Since April 20, SLB’s stock price has risen 7.3%. SLB makes up 3.0% 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 risen 12% since April 20.
Schlumberger’s seven-day stock price forecast
Schlumberger’s stock will likely close between $76.34 and $72.24 in the next seven days based on its implied volatility. Schlumberger’s seven-day stock price forecast considers normal distribution of stock prices and one standard deviation probability of 68.2%. SLB’s stock price was $74.29 on May 18.
Implied volatility for SLB’s peers
National Oilwell Varco’s (NOV) implied volatility on May 18 was 25.9%, which implies NOV’s stock price can vary between $44.98 and $41.86 in the next seven days. Helmerich & Payne’s (HP) implied volatility was 28.0% on May 18, which implies HP’s stock price can range between $74.78 and $69.20 in the next seven days. Tidewater’s (TDW) implied volatility was 37.9% on May 18, which implies TDW’s stock price can vary between $32.91 and $29.63 in the next seven days. Read more about Schlumberger in Market Realist’s Analyzing Schlumberger’s Revenue and Earnings in 1Q18.
Crude oil’s implied volatility
On May 18, crude oil’s implied volatility was 22.4%. Since April 20, crude oil’s volatility has fallen, while SLB’s implied volatility also decreased during the same period.
Next, we’ll discuss SLB’s correlation coefficient with crude oil.