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What Do Southern Company’s Volatility Trends Indicate?

Vincent Kruger
What Do Southern Company’s Volatility Trends Indicate?

On October 22, Southern Company (SO) stock witnessed an implied volatility of 20.0%—close to its 15-day average. In comparison, the Utilities Select Sector SPDR ETF’s (XLU) volatility was ~15.0%. The implied volatility shows investors’ nervousness. Higher volatility is usually associated with a fall in a stock’s price.