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What Do Southern Company’s Volatility Trends Indicate?

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

On December 10, Southern Company (SO) stock witnessed an implied volatility of 18%—higher than its 15-day average. In comparison, the Utilities Select Sector SDPR ETF’s (XLU) implied volatility was close to 15%. A stock’s implied volatility represents investors’ unease. Rising volatility is generally related to a fall in a stock’s price.