Kimbell Royalty Partners, LP (KRP) Volatility Skew
Implied volatility skew shows how IV varies across strike prices for a given expiration. Steeper skews indicate higher demand for downside protection relative to upside speculation.
Kimbell Royalty Partners, LP (KRP) operates in the Energy sector, specifically the Oil & Gas Exploration & Production industry, with a market capitalization near $1.45B, listed on NYSE, employing roughly 23 people, carrying a beta of 0.28 to the broader market. Kimbell Royalty Partners, LP, together with its subsidiaries, acquires and owns mineral and royalty interests in oil and natural gas properties in the United States. Led by Robert Dean Ravnaas, public since 2017-02-03.
Snapshot as of May 14, 2026.
- Spot Price
- $15.30
- ATM IV
- 14.0%
- IV Skew 25Δ
- 0.754
- IV Rank
- 5.6%
- IV Percentile
- 15.1%
- Term Structure Slope
- -0.018
As of May 14, 2026, Kimbell Royalty Partners, LP (KRP) at-the-money implied volatility is 14.0%. IV rank is 5.6% (where 0% is the 52-week low and 100% is the 52-week high). IV percentile is 15.1%. The 25-delta skew is +0.754: calls carry premium over puts, indicating upside speculation or squeeze risk. High IV rank typically favors premium-selling strategies; low IV rank favors premium-buying.
KRP Strategy Selection at Current Volatility Levels
For Kimbell Royalty Partners, LP options at 14.0% ATM IV, low IV rank (5.6%) favors premium-buying or long-vol structures: long calls or puts, debit spreads, calendar spreads, long straddles. The risk: low-rank regimes can persist for months while time decay eats premium-buyers alive. The 25-delta skew tilts to calls, so call-credit spreads or covered-call writes harvest more premium than put-credit spreads of the same width. Pair the vol-rank read with the dealer-gamma view and the upcoming-events calendar to confirm the strategy fits both the structural regime and the path-dependent risk. The variance risk premium - the persistent gap between implied and subsequently realized vol - is positive in equity markets on average; high IV rank typically reflects a stretch where the premium is wider than usual.
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Frequently asked KRP volatility skew questions
- What is the current KRP ATM implied volatility?
- As of May 14, 2026, Kimbell Royalty Partners, LP (KRP) at-the-money implied volatility is 14.0%. IV rank is 5.6% on a 0-100% scale anchored to the 1-year IV range. ATM IV is the volatility input that makes a Black-Scholes-equivalent model reproduce the listed at-the-money option prices.
- Is KRP IV high or low historically?
- IV is subdued relative to its 1-year history, conditions that typically favor premium-buying strategies (long calls, long puts, debit spreads, calendar spreads).
- What does KRP volatility skew tell options traders?
- Volatility skew is the pattern by which IV varies across strikes for a given expiration. Kimbell Royalty Partners, LP shows upside-skewed pricing: 25-delta calls trade richer than 25-delta puts, often reflecting upside speculation or squeeze risk. Skew matters for risk-defined strategy selection: when downside puts are rich, put-credit spreads capture more premium; when upside calls are rich, call-credit spreads or covered-call writes harvest more.