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Exploring Energy Transfer Equity’s Implied Volatility

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ETE’s implied volatility

Energy Transfer Equity’s (ETE) implied volatility has fallen significantly after skyrocketing at the beginning of 2016. ETE’s current implied volatility is 59.1%.

The spike in ETE’s implied volatility could be attributed to the rise in uncertainties over the Energy Transfer–Williams Companies (WMB) merger after the slump in crude oil prices. However, as the proceedings moved in ETE’s favor, its implied volatility fell.

ETE’s peer Williams Companies (WMB) has an implied volatility of 52.0%. At the same time, ETE’s subsidiaries Energy Transfer Partners (ETP) and Sunoco Logistics Partners (SXL) have implied volatilities of 38.5% and 35.6%, respectively.

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