Understanding Xcel Energy’s Implied Volatility
Xcel Energy’s implied volatility
On April 11, 2017, Xcel Energy’s (XEL) implied volatility was 17%—marginally higher than its 15-day average. As the graph below shows, a fall in XEL’s implied volatility has generally been associated with gains in its stock price, while a rise in its implied volatility has been generally associated with stock price declines.
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By comparison, Southern Company’s (SO) implied volatility was 12.8% on April 11—marginally below its 15-day average. Duke Energy’s (DUK) implied volatility was 13.7% on the same date, which was marginally higher than its 15-day average.
Continue to the next and final part of this series for a discussion of the current analyst recommendations and target prices for Xcel Energy and its peers.