Halliburton’s implied volatility
Halliburton’s (HAL) implied volatility was 24.4% as of June 15. Since April 23, the day Halliburton released its first-quarter earnings, its implied volatility has fallen marginally. HAL 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 increased 1% since April 23 versus a 4% fall in HAL’s stock price during the same period. Implied volatility (or IV) signals a stock’s potential price movement from the perspective of option holders.
Halliburton’s stock price forecast
Implied volatility for HAL’s peers
TechnipFMC’s (FTI) implied volatility as of June 15 was 31.3%, which implies that FTI’s stock price could vary between $32.39 and $29.69 between now and June 22. McDermott International’s (MDR) implied volatility was 36.2% as of June 15, which implies MDR’s stock price could vary between $21.33 and $19.29 between now and June 22. Weatherford International’s (WFT) implied volatility was 56.5% as of June 15, which implies that WFT’s stock price could vary between $3.68 and $3.14 between now and June 22.
Crude oil’s implied volatility
As of June 15, crude oil’s implied volatility was 24.8%. Since April 23, crude oil’s volatility has fallen, while HAL’s implied volatility has also decreased during the same period.
Next, we’ll discuss crude oil’s correlation with HAL.