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How Is AES’s Implied Volatility Trending?

Vincent Kruger
How Is AES’s Implied Volatility Trending?

On October 15, the implied volatility of AES Corporation (AES) stock was 25%, which was higher than its 15-day average volatility of 21%. AES’s average implied volatility in the last few weeks was way higher than that of broader utilities and broader markets. Implied volatility represents investor anxiety. An increase in implied volatility is generally associated with a fall in the stock and vice versa.