Looking at Southern Company’s Implied Volatility
Southern Company and its implied volatility
On April 13, 2017, Southern Company’s (SO) implied volatility was 14.2%, which was marginally higher its 15-day average. As the graph below shows, a fall in SO’s implied volatility has generally been associated with gains in its stock price, while a rise in implied volatility has been generally associated with stock price declines.
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In comparison, the Utilities Select Sector SPDR ETF (XLU) had an implied volatility of 13.5% on April 13, 2017, while peer Duke Energy’s (DUK) implied volatility was 14%, which was close to its 15-day average.
Continue to the final part of this series for a discussion of the current analyst recommendations for Southern Company.