Where Are Refining Stocks’ Implied Volatilities Positioned?
Marathon Petroleum’s (MPC) implied volatility currently stands at 37%, the highest among its peers.
![Maitali Ramkumar - Author](https://media.marketrealist.com/brand-img/B3rTvxF2z/200x200/img_20181231_204721-maitali-ramkumar-1595895220527.jpg)
Dec. 5 2016, Updated 11:05 a.m. ET
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Refining stocks’ implied volatilities
Marathon Petroleum’s (MPC) implied volatility currently stands at 37%, the highest among its peers Valero Energy (VLO), Tesoro (TSO), and Phillips 66 (PSX). On the other hand, Phillips 66 has the lowest implied volatility at 23%.
VLO and TSO have implied volatilities of 26% and 32%, respectively. For exposure to these stocks, investors can consider the iShares North American Natural Resources ETF (IGE). The ETF has ~7% exposure to refining and marketing sector stocks.
Move on to the next article to find out how refining stocks’ valuations are placed compared to their historic values.