What Volatility Trends in Dominion Energy Stock Suggest



Implied volatility

On March 15, 2018, the implied volatility in Dominion Energy (D) stock was 18%—marginally higher than its 15-day average. An increase in the implied volatility indicates investors’ anxiety. Generally, increased implied volatility is associated with a fall in stock prices and vice versa.

Recently, the implied volatility in the Utilities Select Sector SPDR ETF (XLU) was close to 14%. In comparison, the volatility in broader markets was ~12%. Utilities are generally considered to be safe due to their stable stock movements. However, utilities were even more volatile than broader markets.

IV d

Recently, the implied volatility in Duke Energy (DUK) and NextEra Energy (NEE) was close to 17%.

To learn more about broader utilities’ recent performance and volatility trends, read S&P 500 Utilities: Last Week’s Best and Worst Performers.

Next, we’ll discuss Dominion Energy’s target price.

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