SLB’s implied volatility in context
Schlumberger’s (SLB) first-quarter financial results were released on April 20. Between April 20 and July 3, its implied volatility has increased from 24% to 25%, and SLB stock has fallen 5%. SLB’S current IV (implied volatility) is higher than its past two-year average of 21.2%.
Stock price forecast for Schlumberger
Schlumberger stock will likely close between $69.43 and $62.25 by July 20, based on its implied volatility. The forecast considers a normal distribution of stock prices and one standard deviation probability of 68.2%. The stock closed at $65.84 on July 3.
Implied volatility for its peers
- National Oilwell Varco’s (NOV) implied volatility as of July 3 was 32%, which implies a stock price of $46.12–$40.18 by July 20.
- Helix Energy Solutions Group’s (HLX) implied volatility as of July 3 was 50.2%, which implies a stock price of $8.93–$7.19 by July 20.
- TechnipFMC’s (FTI) implied volatility as of July 3 was 36.4%, which implies a stock price of $33.52–$28.64 by July 20.
Crude oil’s implied volatility
As of July 3, crude oil’s implied volatility was 25.7%, which implies a crude oil price of $78.26–$70.02 by July 20.
Next, we’ll look at investors’ bearishness in SLB stock as indicated by its short interest.