What Southern Company’s Recent Implied Volatility Trends Indicate
On January 11, 2018, the implied volatility of Southern Company (SO) stock was 14%, close to its 15-day average implied volatility. It should be noted that implied volatility of Southern Company is higher than peers’ average as well as that of broader markets.
Implied volatility measures investor anxiety, and higher implied volatility is generally associated with a fall in the stock’s price. The implied volatility of the Utilities Select Sector SPDR ETF (XLU) was most recently 12%, while the SPDR S&P 500 (SPX-INDEX) (SPY) had an implied volatility of around 7% on January 11,.
Utilities are generally considered to be safe and stable stocks. However, some of the S&P 500 Utilities stocks have recently seen interesting trends. Read Analyzing the Top 5 Most Volatile S&P 500 Utilities.
Up next, let’s take a look Southern Company’s price targets and analyst views.