What Does PPL’s Implied Volatility Suggest?
PPL’s implied volatility
On April 14, 2017, PPL Corporation’s (PPL) implied volatility was 14%, marginally lower than its 15-day average implied volatility.
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As the following graph shows, a fall in PPL’s implied volatility has generally corresponded to gains in its stock price, and vice versa.
The Utilities Select Sector SPDR (XLU) had an implied volatility of 12.6% on April 19, 2017. Among the S&P 500 Utilities, the largest merchant power stock is NRG Energy (NRG). It had the highest implied volatility of 38% as of April 19, 2017.
To learn more about NRG Energy, read Why NRG Energy Stock Could Continue to Soar.