Eaton Corporation Offering Possible 6.38% Return Over the Next 23 Calendar Days

Eaton Corporation's most recent trend suggests a bullish bias. One trading opportunity on Eaton Corporation is a Bull Put Spread using a strike $72.50 short put and a strike $67.50 long put offers a potential 6.38% return on risk over the next 23 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $72.50 by expiration. The full premium credit of $0.30 would be kept by the premium seller. The risk of $4.70 would be incurred if the stock dropped below the $67.50 long put strike price.

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

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

The RSI indicator is above 80 which suggests that the stock is in overbought 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

Cramer's 7 major investment themes built to last
Thu, 27 Feb 2014 12:14:59 GMT

8:31 am Eaton increases quarterly dividend by 16.7% to $0.49 per share from $0.42 per share
Thu, 27 Feb 2014 04:34:15 GMT

EATON CORP PLC Files SEC form 10-K, Annual Report
Wed, 26 Feb 2014 20:40:21 GMT

Fuel Cell Technology Enables Efficient Warehouse Management: an Exclusive Interview with Andy Marsh, President and CEO of Plug Power (PLUG)
Wed, 26 Feb 2014 19:05:00 GMT

Jim Cramer Quick Take: Eaton's Sandy Cutler Is One of My ‘Bankable CEOs'
Wed, 26 Feb 2014 18:39:00 GMT

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