How Has Marathon Petroleum’s Implied Volatility Trended?

Marathon Petroleum’s implied volatility

Marathon Petroleum’s (MPC) implied volatility currently stands at 34.5%. This is 17% lower than its 30-day average implied volatility, which stands at 41.9%. Since June 7, 2016, MPC’s implied volatility has fallen by 38%. During the same period, MPC’s stock price rose by 19%.

How Has Marathon Petroleum’s Implied Volatility Trended?

Peers’ implied volatility

MPC’s peer Phillips 66 (PSX) has the lowest implied volatility, standing at 24.5%. On the other hand, Alon USA Energy (ALJ) has the highest implied volatility, standing at 62.9%. Western Refining (WNR) and Delek US Holdings (DK) have higher implied volatilities than MPC.

For exposure to refining and marketing sector stocks, you can consider the SPDR S&P Oil & Gas Exploration & Production ETF (XOP). This ETF has ~16% exposure to the sector.