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Energy Transfer Equity: The Leader in Implied Volatility

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Sep. 27 2016, Published 7:44 a.m. ET

Midstream stocks with high implied volatilities

On September 26, 2016, Energy Transfer Equity (ETE) had an implied volatility of 46.1%, the highest among the midstream companies. Its 15-day average implied volatility was 44.8%, and its current volatility was 3.1% above its 15-day average.

Now let’s look at other midstream stocks’ volatilities on September 26, 2016:

  • Crestwood Equity Partners (CEQP): 44.3% (5.5% above its 15-day average)
  • NGL Energy Partners (NGL): 43.9% (17% above its 15-day average)
  • Enable Midstream Partners (ENBL): 40.6% (7.6% below its 15-day average)
  • EnLink Midstream Partners (ENLK): 38.5% (5.5% above its 15-day average)
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Midstream stocks with the lowest implied volatilities

On September 26, 2016, Buckeye Partners (BPL) had the lowest implied volatility among all midstream companies. Its implied volatility was 17.8%. Its 15-day average implied volatility was 20.1%, and its current implied volatility was 11.3% below its 15-day average.

Let’s look at some other midstream stocks with low implied volatilities on September 26, 2016:

  • Spectra Energy Partners (SEP): 17.9% (9.9% below its 15-day average)
  • Magellan Midstream Partners (MMP): 21% (0.9% below its 15-day average)
  • Enterprise Products Partners (EPD): 23.1% (1.4% below its 15-day average)
  • Boardwalk Pipeline Partners (BWP): 24.4% (7.2% below its 15-day average)

In the next part of this series, we’ll look at the returns of midstream stocks with high and low implied volatilities.

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