How Energy Transfer Equity Could Trade in the Next 7 Days


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.

Article continues below advertisement

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.


More From Market Realist

  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.