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A Look at XLU’s Implied Volatility Trends

Vincent Kruger
A Look at XLU’s Implied Volatility Trends

In this part of the series, we’ll compare the volatilities of utilities against the broader markets. Last week, the S&P 500 had an implied volatility of ~20%, which was higher than the 15-day average. In comparison, slow-and-steady utilities had an implied volatility of 17%. Implied volatility represents investor unease. A rising volatility is generally related to falling stock prices.