Option Update: EnCana volatility at 35 as it plans to split into two firms


EnCana (NYSE: ECA) plans to separate into two companies, one focused on oil and the other natural-gas assets.

ECA closed at $85.93 Friday.

Friedman Billings Ramsey says: "The sum-of-the-parts DCF valuation is $92/share based on the company's most reserve data."

ECA over all option implied volatility of 35 is above its 26-week average of 33 according to Track Data, suggesting slightly larger price fluctuations.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

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Last updated: February 13, 2012: 02:50 PM

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