Stock Alert and Holding Pattern: Crestwood Equity Partners LP Price Volatility Hits An Amplified Level – CML News

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Stock Alert and Holding Pattern
Before we cover the full analysis we make a quick alert here that Crestwood Equity Partners LP (NYSE:CEQP) has seen its stock price move at an amplified level. We’ll go through the details below — but that’s the lede — the stock has been behaving, roughly speaking, ‘normally.’ If there was a post it note to summarize the stock movement in the last 30-days it would likely read “holding pattern.” The HV20 is 23.04% verus the HV20 of the S&P 500 at 7.25%.

But don’t confuse a holding pattern with low risk — this is quite possibly an inflection point.

Another bit to this holding pattern, which we cover in the article, is that while the historical volatility may be an amplified level, the real question that needs to be answered for option traders is not if the HV20 is high or low, but rather if the implied volatility that is priced for the next 30-days accuratley reflects what we’re about to see in the stock for the next month

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