Energy Transfer Partners’ implied volatility
Energy Transfer Partners’ (ETP) 30-day implied volatility was 29.2% as of March 19, 2018—higher than the 15-day average of 26.8%. At the same time, Energy Transfer Equity (ETE) has an implied volatility of 35.0%. Energy Transfer Equity’s higher implied volatility is due to its higher liquidity and dependence on the limited partnership for distribution income.
Kinder Morgan (KMI) and ONEOK (OKE) have an implied volatility of 26.5% and 22.6%, respectively. In comparison, the Alerian MLP ETF (AMLP) has an implied volatility of 25.6%. Usually, Energy Transfer Partners has a higher implied volatility compared to AMLP. Energy Transfer Partners has slightly higher commodity price exposure compared to most AMLP constituents.
Energy Transfer Partners’ price forecast
Based on its current implied volatility, Energy Transfer Partners might trade in the range of $15.72–$17.04 in the next seven days. The stock is expected to trade within this range with a 60% probability—assuming a standard deviation of one and a normal distribution of prices.