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A Look into Genesis Energy’s Implied Volatility

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Genesis Energy’s implied volatility

Genesis Energy’s (GEL) implied volatility has come down significantly after increasing to over ~90.0% in the beginning of 2016. GEL’s current implied volatility is 33.6%. This is 9.6% higher than its 15-day average of 30.7%.

The increase in GEL’s volatility during the first three months of 2016 could be attributed to the volatility in commodity prices. However, as the commodity prices started to recover, the company’s implied volatility has come down.

Among Genesis Energy’s peers, Sunoco Logistics Partners (SXL), Buckeye Partners (BPL), and NuStar Energy (NS) have implied volatilities of 33.0%, 22.1%, and 31.3%, respectively.

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