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Which Midstream Stocks Have the Highest Implied Volatilities?

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Jan. 24 2017, Published 10:23 a.m. ET

Midstream stocks with high implied volatilities

On January 23, 2017, EnLink Midstream (ENLC) had an implied volatility of 40.1%—the highest among the midstream companies in the Alerian MLP ETF (AMLP). EnLink Midstream’s 15-day average implied volatility is 39.3%. Its current volatility is 2% above its 15-day average.

The rise in EnLink Midstream’s implied volatility compared to its 15-day average is the highest among the five midstream stocks with the highest implied volatilities. Notably, on January 12, 2017, Jeffries changed its rating to “underperform” on the stock. Its implied volatility fell 3.3%, and the stock fell 0.8% on the same day.

Remember, stocks that see large movements or that are expected to see large movements in the future could have high implied volatilities.

Below are the other midstream stocks with high implied volatilities as of January 23, 2017:

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  • NGL Energy Partners (NGL): 35.3%, which is 12.5% below its 15-day average
  • Rice Midstream Partners LP (RMP): 33.3%, which is 9% below its 15-day average
  • Antero Midstream Partners LP (AM): 32.4%, which is 1.2% below its 15-day average
  • Western Refining Logistics (WNRL): 31.6%, which is 1.3% below its 15-day average

Midstream stocks with low implied volatilities

Midstream stocks with low implied volatilities on January 23 include the following:

  • Magellan Midstream Partners’ (MMP) implied volatility was 16.9%—1.3% less than its 15-day average.
  • Spectra Energy Partners’ (SEP) implied volatility was 18%—4.1% lower than its 15-day average.
  • NuStar Energy LP’s (NS) implied volatility was 19.2%—16% less than its 15-day average.
  • Buckeye Partners’ (BPL) implied volatility was 20%—0.3% more than its 15-day average.
  • Enterprise Products Partners’ (EPD) implied volatility was 20.1%—3.2% less than its 15-day average.

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

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