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What Cheniere Energy’s Volatility Trends Indicate

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Volatility

On August 24, the stock of leading liquified natural gas exporter Cheniere Energy (LNG) had an implied volatility of 28%, close to its 15-day average. In comparison, the Global X MLP & Energy Infrastructure ETF (MLPX) showed an implied volatility of ~18% on the day.

Implied volatility measures investor nervousness, and a rise in implied volatility is normally associated with a fall in a stock’s price.

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The implied volatilities of Enterprise Products Partners (EPD) and Energy Transfer Equity (ETE) were 14% and 21%, respectively, on the day, while the broader market’s volatility was ~8%. Cheniere Energy stock is far more volatile than its peers and even the broader market.

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Energy Transfer Equity stock has been relatively flat this year. However, its pending consolidation and strong second-quarter earnings results present attractive growth prospects for it going forward. You can learn more about these prospects in Energy Transfer’s Upcoming Projects, Charts, Yield, and More.

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