52-Week High Alert: Trading today’s movement in ESSEX PROPERTY $ESS

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Quantchabot has detected a promising Bull Call Spread trade opportunity for ESSEX PROPERTY (ESS) for the 21-Jan-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ESS was recently trading at $352.55 and has an implied volatility of 20.40% for this period. Based on an analysis of the options available for ESS expiring on 21-Jan-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $352.60-$382.57 at expiration. In this scenario, the average linear return for the trade would be 29.45%.

52 week high: ESSEX PROPERTY recently reached a new 52-week high at $354.32. ESS had traded in the range $226.79-$353.63 over the past year.

Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if ESS maintains its current direction and does not revert back to pricing on the bearish side of $352.55 on 21-Jan-2022. If possible, the trade has been padded such that slight movement against the trade would still return a profit.

Upside potential: Using this bullish strategy, the trade would be profitable if ESSEX PROPERTY closes at or above $352.30 on 21-Jan-2022. Based on our risk-neutral analysis, there is a 50.42% likelihood of this return.

Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.

To analyze this trade in depth, please visit the Quantcha Options Search Engine.