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How Energy Transfer Equity Could Trade in the Next 7 Days

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Dec. 4 2020, Updated 10:53 a.m. ET

Energy Transfer Equity’s implied volatility

Energy Transfer Equity’s (ETE) 30-day implied volatility was 29.6% on March 9, 2018, significantly lower than its 15-day average of 32.3%. At the same time, peers Kinder Morgan (KMI) and Williams Companies (WMB) had implied volatility of 21.0% and 20.5%, respectively, and the Alerian MLP ETF (AMLP) had implied volatility of 21.3%. ETE’s higher implied volatility may be due to Energy Transfer Partners’ (ETP) higher commodity price exposure and dependence upon limited partnerships for distribution income.

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Energy Transfer Equity’s price forecast

Based on its current implied volatility, ETE might trade between $14.86 and $16.16 in the next seven days. The general partner is expected to trade in this range 68.0% of the time, assuming a standard deviation of one and a normal distribution of prices. In the next article, we’ll look at Energy Transfer Equity’s current distribution yield.

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