Where Plains All American Pipeline Could Trade
Plains All American Pipeline’s implied volatility
Plains All American Pipeline’s (PAA) 30-day implied volatility was 28.0% as of August 25, 2017. Its peers Energy Transfer Partners (ETP) and Kinder Morgan (KMI) have implied volatilities of 22.1% and 17.7%, respectively, as of August 25. In comparison, the Alerian MLP ETF (AMLP) has an implied volatility of 18.2%. Plains All American Pipeline’s high implied volatility could be due to its relatively high crude oil exposure, weak earnings, and its recent distribution cut plans.
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Plains All American Pipeline might trade at $19.41–$20.97 in the next seven days based on its closing price of $20.2 on August 25. The stock price is expected to be within this range 68.0% of the time using a standard deviation of one and assuming a normal distribution of prices.
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