Where Cheniere Energy Could Trade from Here
Cheniere Energy’s implied volatility
Cheniere Energy’s (LNG) 30-day implied volatility was 28.6% as of November 10, which is higher than the 15-day average of 26.8%. At the same time, Cheniere Energy’s peers Energy Transfer Equity (ETE) and Kinder Morgan (KMI) have implied volatilities of 28.8% and 18.4%, respectively. By comparison, the Alerian MLP ETF (AMLP) has an implied volatility of 19.9%. Cheniere Energy’s higher implied volatility compared to AMLP and its peers could be due to the volatility in LNG (liquefied natural gas) prices and uncertainty in the global LNG market.
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Cheniere Energy’s price forecast
Cheniere Energy might trade in the range of $47.76–$51.74 in the next seven days, based on its November 10 closing price of $49.75. The stock price is expected to trade within this range with a 68.0% probability, using a standard deviation of one and assuming a normal distribution of prices.
In the next part of this series, we’ll look at recent analyst ratings for Cheniere Energy.