BPL, NS, EEP, ANDX: Which Has the Highest Implied Volatility?



Implied volatility

Enbridge Energy Partners (EEP) has the highest implied volatility among the four peers we’re looking at in this series, and its current implied volatility of 32.2% is higher than its 15-day average of 31.3%. EEP is followed by NuStar Energy (NS), which has volatility of 29.0%. Buckeye Partners (BPL) has slightly lower implied volatility, of 23.9%. BPL’s, NS’s, and EEP’s implied volatility is higher than the Alerian MLP ETF’s 21.5%. Andeavor Logistics (ANDX) has the lowest implied volatility among the selected peers, of 21.2%.

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Price forecast

Based on their current implied volatility, the four peers are expected to trade in the following ranges in the next seven days:

  • BPL: $46.64–$49.84
  • NS: $28.45–$30.83
  • EEP: $13.19–$14.43
  • ANDX: $45.08–$47.80

These ranges assume a normal distribution of prices and standard deviation of one. In the next article, we’ll look at analysts’ ratings and target prices for the four peers.


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