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%.
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.