On October 5, the Utilities Select Sector SPDR ETF (XLU) witnessed an implied volatility of 22%—way higher than its 15-day average of 14%. Recently, the SPDR S&P 500’s implied volatility was beyond 11%. The implied volatility represents investors’ anxiety. An increase in the volatility is usually related to a fall in stock prices.
Top utility stocks Duke Energy (DUK) and NextEra Energy (NEE) exhibited volatility around 16%. At the same time, the volatility of Dominion Energy (D) and Southern Company (SO) stocks had volatility around 17% and 19%.
To learn how the biggest utility stocks are positioned going forward, read How the Big Utilities Are Placed for the Future.