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ESS bearish signal

Our proprietary technical trading system has initiated a sell signal on Essex Property Trust, Inc. (ESS). Based on the recent spike in implied volatility, there is still good premium to collect in the May options. If you are bearish on the stock, an easy trade to manage would be to set up a bear call spread that has 11 days until expiration. Stops can be placed on a close above 110 and the break even at expiration is $111.05 on the underlying stock.

Sell -1 May 110 call and buy +1 May 115 calls for a net credit of $1.05.

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