Eaton Corporation (ETN) Offering Possible 14.94% Return Over the Next 31 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 $67.50 short call and a strike $72.50 long call offers a potential 14.94% return on risk over the next 31 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $67.50 by expiration. The full premium credit of $0.65 would be kept by the premium seller. The risk of $4.35 would be incurred if the stock rose above the $72.50 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 below 20 which suggests that the stock is in oversold territory.

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

Will Eaton (ETN) Stock Be Hurt By This Ratings Downgrade?
Wed, 17 Sep 2014 13:24:00 GMT

Eaton downgraded by Stifel
Wed, 17 Sep 2014 11:34:44 GMT

Must-know: India’s transmission and distribution sector
Tue, 16 Sep 2014 13:00:24 GMT

Bharti Airtel to sell over 3,500 African telecom towers to Eaton
Mon, 08 Sep 2014 13:04:04 GMT

Pro sticking with survival stock picks
Mon, 08 Sep 2014 12:19:00 GMT

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