On March 21, the implied volatility of Williams Companies (WMB) stock was 17%, lower than its 15-day average. Implied volatility represents investor anxiety, and a rise in it is usually associated with a fall in a stock’s price.
Williams Companies’ implied volatility levels have come down significantly recently. They are currently at six-month lows after peaking at close to 40% levels late last year.
In comparison, SPY’s implied volatility is close to 11%, while Williams Companies’ peer Energy Transfer’s (ET) implied volatility was 21% recently. The Alerian MLP ETF (AMLP) had an implied volatility of ~16% on March 21.
Many midstream energy stocks have started off strong this year, and they continue to seem well placed. To find out where the top midstream stocks could go this year, read Top Midstream Stocks: Analysts’ Views and Price Targets.