Midstream stocks with high implied volatilities
Teekay LNG Partners’ 15-day average implied volatility is 41.8%. Its current volatility is 6.8% above its 15-day average.
Stocks that saw large movements or that are expected to see large movements in the future can have high implied volatilities. In the next part, we’ll analyze Teekay LNG Partners’ returns.
For now, let’s look at other midstream stocks with high implied volatilities as of December 20, 2016:
Midstream stocks with low implied volatilities
On December 20, 2016, Magellan Midstream Partners (MMP) had the lowest implied volatility among all of the midstream companies that make up AMLP. The company’s implied volatility was 13.7%. Its 15-day average implied volatility was 19.4%. Its current implied volatility is 29.3% below its 15-day average.
Let’s look at some other midstream stocks with low implied volatilities as of December 20, 2016:
- Enterprise Products Partners (EPD) – 18.1%, 26.9% below its 15-day average
- EQT Midstream Partners (EQM) – 18.7%, 21.5% below its 15-day average
- ONEOK Partners (OKS) – 20%, 21.6% below its 15-day average
- Buckeye Partners (BPL) – 20%, 2.1% below its 15-day average
A pattern that emerges from the above figures is that the companies with lower implied volatilities are those with strong parent companies or those who are strong players in the industry.
In the next part of this series, we’ll look at the returns of midstream stocks with high and low implied volatilities.