Analyzing NextEra Energy’s Implied Volatility
NextEra Energy’s implied volatility
On April 21, 2017, NextEra Energy’s (NEE) implied volatility was 13.3%—marginally below its 15-day average of 15%. As the following graph shows, a fall in NextEra Energy’s implied volatility has generally been associated with gains in its stock price. A rise in its implied volatility has generally been associated with stock price declines.
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In comparison, the Utilities Select Sector SPDR (XLU) had an implied volatility of 13% on April 21, 2017. Southern Company’s (SO) implied volatility was near 13.4% that day as well. Southern Company is NextEra Energy’s peer.
In the next part of this series, we’ll look at NextEra Energy’s price targets and compare them with its peers.