Schlumberger’s implied volatility
Schlumberger (SLB) released its first-quarter financial results on April 20. Between April 20 and July 13, Schlumberger’s implied volatility fell from ~24% to 23.2%. The company’s stock price fell 1.7% during the same period.
Schlumberger accounts for 3.1% of the SPDR S&P Oil & Gas Equipment & Services ETF (XES), which provides exposure to the energy sector’s oil and gas equipment and services segment. XES rose 0.2% between April 20 and July 13.
Schlumberger’s stock price forecast this week
Schlumberger stock will likely close between $65.89 and $70.27 by July 20 based on its implied volatility. This forecast considers a normal distribution of stock prices and a standard deviation of one with a probability of 68.2%. Schlumberger stock closed at $68.08 on July 13.
Implied volatilities of Schlumberger’s peers
- National Oilwell Varco’s (NOV) implied volatility on July 13 was 29.4%, implying that its stock price would be $46.04–$42.44 by July 20.
- Helmerich & Payne’s (HP) implied volatility was 32.1% on July 13, implying that its stock price would be $71.11–$65.05 by July 20.
- McDermott International’s (MDR) implied volatility was 44.1% on July 13, implying that its stock price would be $19.22–$17.00 by July 20.
Crude oil’s implied volatility
On July 13, crude oil’s implied volatility was 24.4%, implying a price of $73.41–$68.61 by July 20.
Next, we’ll discuss Schlumberger’s correlation coefficient with crude oil.