NextEra is selling equity units to Morgan Stanley and BofA Global Research
The shares of NextEra Energy Inc (NYSE:NEE) are down 3.8% to trade at $69.55, and earlier fell as low as $68.97, after the utility company announced the sale of $2 billion equity units to Wells Fargo and BofA Global Securities. The company also reaffirmed its long-term growth expectations and plans to meet with investors through June.
The shares are one of the worst performers on the S&P 500 Index (SPX) today. On the charts, NEE has shed 13.66% off its May 30, 52-week high of $80.47, but is still up 15% since the start of 2024. Today’s negative price action has the stock testing the $70 level, which kept losses in check from March 2021 to August 2023.
Now could be a good time to weigh in on the security’s next move with options. The stock is seeing attractively priced premiums at the moment, per its Schaeffer’s Volatility Index (SVI) of 23%, which sits in the 25th percentile of its annual range. Furthermore, the security’s Schaeffer’s Volatility Scorecard (SVS) sits at an 86 out of 100, meaning NEE has exceeded option traders’ volatility expectations during the past year.