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XLU: Utilities’ Implied Volatility Trends

Vincent Kruger
XLU: Utilities’ Implied Volatility Trends

In this part of the series, we’ll discuss utilities’ volatilities compared to broader markets. Last week, the S&P 500 had an implied volatility of ~18%, which was higher than the 15-day average. In comparison, utilities’ implied volatility was 14%. The utilities sector is usually a slow-moving sector. The implied volatility shows investors’ unease. Higher volatility is usually related to falling stock prices.