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What Dominion Energy’s Implied Volatility Trends Suggest

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Implied volatility

On November 27, implied volatility of Dominion Energy (D) stock was at 16%, close to its 15-day average implied volatility. The Utilities Select Sector SPDR ETF (XLU) recorded implied volatility of 15% while the SPDR S&P 500’s implied volatility was beyond 16%. Generally, broader markets’ implied volatility levels are lower than utilities at large.

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Implied volatility represents investors’ anxiety. An increase in the volatility is usually related to a fall in stock prices.

Among the utilities, PG&E (PCG) stock recorded the highest implied volatility of about 62%. Duke Energy (DUK) and NextEra Energy (NEE) had volatility around 16%. At the same time, Dominion Energy (D) and Southern Company (SO) had volatility around 17% and 19%, respectively.

To learn more about US utility stocks’ recent performance and where they might go from here, see Utilities Last Week: Performance, Valuation, Charts, and More.

Up next in this series, we’ll look at Dominion Energy’s views on Wall Street and its target prices.

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