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Utilities are getting a bit of a reprieve after taking a beating over the past few days. Option...

Utilities are getting a bit of a reprieve after taking a beating over the past few days. Option implied volatility has been increasing as investors rotate out of high dividend yield positions in the wake of a rise in treasury yields: AEE +1.7%, D +0.3%, DTE +1.9%, EIX +0.6%, ETR +1.3%, EXC +0.7%, FE +0.9%, NEE +1.7%, PEG +0.8%, PPL +0.5%, SRE +1.3%, TE +0.5%, AEP +0.8%, DUK +0.6%, ED NU +1.6%, PCG +1.2%, SO +0.4%, XEL +1.3%.
Comments (5)
  • TruffelPig
    , contributor
    Comments (4059) | Send Message
    So, seriously, investors are rotating because now the yield of treasuries is like 2.1% for the 10-year? I think investors are rotating because they are going in high beta stocks.
    30 May 2013, 11:22 AM Reply Like
  • Worn out 123
    , contributor
    Comments (430) | Send Message
    TPig, I have to agree with u. 2.1% still zucks when utes are paying twice that. Doesn't seem like enough to draw off many utility investors.
    I would rather think they are looking for the risk/reward scenarios in oil,
    and or banking; which is looking good with the Fed. giving banks tax payer money they now r investing in the markets. With the "too big to jail" crowd receiving monthly gifts of taxpayer funds to invest how can they not prosper.
    30 May 2013, 02:53 PM Reply Like
  • TruffelPig
    , contributor
    Comments (4059) | Send Message
    The oil stocks look pretty interestingly priced still considering how much the market advanced, yes. I am not any specialist on the banks its like dark matter to me.
    30 May 2013, 09:35 PM Reply Like
  • al roman
    , contributor
    Comments (4613) | Send Message
    Wires,pipes,telecom,wa... to live with out these things.
    30 May 2013, 11:25 AM Reply Like
  • rambler1
    , contributor
    Comments (398) | Send Message
    I thought it had more to do with Warren Buffett buying NVE for a premium.
    30 May 2013, 12:17 PM Reply Like
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