Energy Transfer Equity’s implied volatility
Energy Transfer Equity’s (ETE) 30-day implied volatility was 23.3% as of December 22, 2017, which is below the 15-day average of 26.0%. At the same time, peers Williams Companies (WMB) and Enterprise Products Partners (EPD) have implied volatilities of 16.6% and 16.7%, respectively. By comparison, the Alerian MLP ETF (AMLP) has an implied volatility of 21.5%. ETE’s slightly higher implied volatility compared to AMLP could be attributed to Energy Transfer Partners’ (ETP) high commodity exposure due to ETP’s commodities acquisitions and its marketing and natural gas processing businesses.
Energy Transfer Equity’s price forecast
Based on its current implied volatility, Energy Transfer Equity is expected to trade in the range of $16.31–$17.39 in the next seven days. ETE has a 68% probability of trading within this range, assuming a normal distribution of prices and a standard deviation of one.
In the next article, we’ll look into Energy Transfer Equity’s recent analyst ratings.