What Duke Energy’s Implied Volatility Hints At

On April 7, 2017, Duke Energy’s (DUK) implied volatility was 13.7%, which was marginally higher than its 15-day average. As you can see in the graph below, a fall in DUK’s implied volatility has generally been associated with rises in its stock price. A rise in its implied volatility has been generally associated with falls in the stock.

By comparison, the Utilities Select Sector SPDR ETF (XLU) had an implied volatility near 13.0% on April 7, 2017. Southern Company’s (SO) implied volatility was 12.8%, which was marginally below its 15-day average.

In the next and final part of this series, we’ll take a look at current analysts’ recommendations for Duke Energy.