What Does Dominion Resources’ Implied Volatility Indicate?
Dominion Resources and its implied volatility
On April 6, 2017, Dominion Resources’ (D) implied volatility was 14.6%—close to its 15-day average. As the following graph shows, a fall in Dominion Resources’ 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 near 13% on April 6, 2017. Among the S&P 500 utilities, the largest merchant power stock, NRG Energy (NRG), had the highest implied volatility of 36%.
To learn more about NRG Energy, read Why NRG Energy Stock Could Continue to Soar.
In the next part, we’ll discuss analysts’ recommendations for Dominion Resources.