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A Look at XLU’s Recent Implied Volatility Trends

Vincent Kruger
A Look at XLU’s Recent Implied Volatility Trends

The broader markets recently witnessed a significant surge in volatility levels. On October 12, implied volatility in the S&P 500 was ~17%, which is much higher than its 15-day average. In comparison, utilities (XLU) on average saw an implied volatility of 17%. Implied volatility represents investor unease. A rising volatility is generally related to a fall in stock prices.