Analyzing SCANA’s Implied Volatility
SCANA (SCG) has become one of the most volatile stocks among the S&P 500 Utilities in the last few months. On November 9, 2017, SCANA had an implied volatility of close to 32%—higher than its 15-day average implied volatility.
The implied volatility and stock prices are normally inversely related. A higher implied volatility suggests investors’ unease. It’s generally associated with falling stock prices.
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NRG Energy (NRG), the most volatile stock among SPX Utilities, has an implied volatility of ~40%.