EPD’s implied volatility
In this article, we’ll take a look at how Enterprise Products Partners (EPD) stock may perform leading up to its earnings release on May 1. The implied volatility in Enterprise Products Partners has fallen ~10.5 percentage points from January 2 to 15.73% as of April 23. EPD stock has risen ~19% during the same period.
Enterprise Products Partners’ implied volatility is higher than its 15-day average volatility of 14.5%.
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EPD’s price forecast
Based on its closing price of $29.34 on April 23 and assuming a normal distribution of prices, EPD could trade in the range of $28.7–$29.98 in the next seven days ending on May 1. The calculation uses a standard deviation of one, which means that the stock’s price is expected to be within this range 68% of the time.
Peers’ implied volatilities
Like Enterprise Products Partners, the implied volatilities in Energy Transfer (ET), Plains All American Pipeline (PAA), Magellan Midstream Partners (MMP), and MPLX (MPLX) have fallen since January 2. The implied volatility in Energy Transfer fell from 41.0% on January 2 to 23.3% on April 23. The implied volatility in Plains All American Pipeline fell from 39.2% to 26.1%, and the implied volatility in Magellan Midstream Partners fell from 27.6% to 17.2%. The implied volatility in MPLX fell from 34.0% to 22.8%. The falls in these companies’ implied volatilities were associated with the rises in their stock prices.