Western Gas Partners’ implied volatility
Western Gas Partners’ (WES) implied volatility has fallen significantly after increasing to over 91.9% in the beginning of 2016. WES’s current implied volatility is 35.4%. This is 4.4% lower than its 15-day average of 37.0%. The increase in WES’s volatility during the first three months of 2016 could be attributed to the volatility in commodity prices. However, as commodity prices started to recover, its implied volatility has fallen slightly.