Eaton Corporation (ETN) Offering Possible 10% Return Over the Next 9 Calendar Days

Eaton Corporation's most recent trend suggests a bearish bias. One trading opportunity on Eaton Corporation is a Bear Call Spread using a strike $73.50 short call and a strike $79.00 long call offers a potential 10% return on risk over the next 9 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $73.50 by expiration. The full premium credit of $0.50 would be kept by the premium seller. The risk of $5.00 would be incurred if the stock rose above the $79.00 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Eaton Corporation is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for Eaton Corporation is bearish.

The RSI indicator is at 50.72 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for Eaton Corporation

Three ‘weak' portfolio plays
Wed, 09 Apr 2014 11:45:00 GMT

Cooper US, Inc. — Moody's affirms Eaton's Baa1 rating; outlook, stable
Mon, 07 Apr 2014 18:13:04 GMT

Pisani market check: Stocks push lower
Mon, 07 Apr 2014 16:41:00 GMT

Eaton Opens Asia Pacific Vehicle Technical Center in Shanghai, Powering Sustainable Growth in China; Issues 2013 Sustainability Report
Fri, 04 Apr 2014 12:49:00 GMT
Business Wire – SHANGHAI–(BUSINESSWIRE)– Power management company Eaton today announced the opening of its Vehicle Group Asia Pacific Technical Center in Shanghai. The new technical center will drive the development and product localization strategy of energy-efficient vehicle power management solutions for the Chinese and regional markets. Eaton Chairman and CEO Sandy Cutler dedicates the new Vehicle Group Asia Pacific Technical Center at a ceremony today in Shanghai. Eaton Chairman and Chief Executive Officer Alexander M. Cutler was in Shanghai to preside over the opening of the new technical center.

JPMorgan’s Duignan Predicts Farm Machinery Slowdown (Audio)
Tue, 01 Apr 2014 16:01:22 GMT

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