uploads/2016/09/returns-6.png

Returns of Utility Stocks with High and Low Implied Volatility

By

Updated

Returns of utility stocks with high implied volatility

As we saw in the previous part of this series, NRG Energy (NRG) has the highest implied volatility figure of all the utility companies. The stock has risen 4.5% on a YTD (year-to-date) basis. In the last five days, it rose 0.9%.

Below are the YTD returns of the utility stocks that we identified in the previous part as having high implied volatility:

  • AES (AES) – 36.2%
  • FirstEnergy (FE) – 4.4%
  • Xcel Energy (XEL) – 18%
  • CMS Energy (CMS) – 18.7%

Here are the five-day returns for these stocks:

  • AES – 8.4%
  • FirstEnergy – 2.9%
  • Xcel Energy – 2.9%
  • CMS Energy – 2.5%
Article continues below advertisement

Returns of utility stocks with low implied volatility

As we saw in the previous part of this series, Southern Company (SO) has the lowest implied volatility figure of all the utility companies. Below are the YTD returns of Southern Company and the other utility stocks that we identified as having low implied volatility:

  • Southern Company – 11.6%
  • Dominion Resources (D) – 11.5%
  • Duke Energy (DUK) – 12.8%
  • NextEra Energy (NE) – 20.4%
  • American Electric Power (AEP) – 13.4%

Now, let’s look at the five-day returns of these stocks:

  • Southern Company – 2.5%
  • Dominion Resources – 1.5%
  • Duke Energy – 1.3%
  • NextEra Energy – 3.2%
  • American Electric Power – 2.7%

In the final part of this series, we’ll look at the utility stocks with the highest short interest-to-equity float ratios.

Advertisement

More From Market Realist