FirstEnergy’s Implied Volatility Trends



Implied volatility

On March 5, FirstEnergy (FE) stock had an implied volatility of 15%, which is close to its 15-day average volatility. In comparison, the Utilities Select Sector SPDR ETF (XLU) had an implied volatility of 11%.

The implied volatility indicates investors’ anxiety. Rising volatility is usually associated with falling stock prices.

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FirstEnergy stock displayed higher volatility levels than utilities at large. Recently, Duke Energy (DUK) and Dominion Energy (D) had implied volatilities close to 13%.

PG&E (PCG) and NRG Energy (NRG) were some of the most volatile stocks. They had implied volatility levels of 60% and 24%, respectively.

Although utilities are considered slow and steady stocks, their implied volatility has been higher than the S&P 500’s implied volatility over the longer period.

To learn more, read Utilities Recap: The Big Gains and Losses Last Week.

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