Energy Transfer Partners’ implied volatility
Energy Transfer Partners’ (ETP) 30-day implied volatility was 26% as of December 27, 2017, which is slightly lower than the 15-day average of 26.7%. ETP’s peers Kinder Morgan (KMI) and Williams Partners (WPZ) have implied volatilities of 21.3% and 18.4%, respectively. By comparison, the Alerian MLP ETF (AMLP) has an implied volatility of 20.8%. ETP’s higher implied volatility compared to AMLP could be mainly attributed to its high crude oil and natural gas exposure through commodities acquisition and marketing and natural gas processing businesses.
Energy Transfer Partners’ price forecast
Based on its implied volatility, Energy Transfer Partners could trade at $17.27–$18.57 in the next seven days. ETP stock is expected to be in that range 68% of the time. That assumes a normal distribution of prices and a standard deviation of one.
In the next part, we’ll look at Energy Transfer Partners’ recent analyst recommendations.