Eaton Corporation (ETN) Offering Possible 11.11% Return Over the Next 32 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 $75.00 short call and a strike $80.00 long call offers a potential 11.11% return on risk over the next 32 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $75.00 by expiration. The full premium credit of $0.50 would be kept by the premium seller. The risk of $4.50 would be incurred if the stock rose above the $80.00 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 46.09 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

Jim Cramer Answers Twitter Questions on Amazon, Eaton, UnderArmour
Mon, 14 Apr 2014 15:28:00 GMT

Eaton to Announce First Quarter 2014 Earnings on April 29, 2014
Fri, 11 Apr 2014 12:30:00 GMT

Eaton to Announce First Quarter 2014 Earnings on April 29, 2014
Fri, 11 Apr 2014 12:30:00 GMT
Business Wire – Power management company Eaton will announce first quarter 2014 earnings on Tuesday, April 29, 2014, before the opening of the New York Stock Exchange. The company will host a conference call at 10 a.m.

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

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