What the Options Market Tells Us About Eaton Corp

Author: Benzinga Insights | April 03, 2024 02:16pm

Whales with a lot of money to spend have taken a noticeably bearish stance on Eaton Corp.

Looking at options history for Eaton Corp (NYSE:ETN) we detected 19 trades.

If we consider the specifics of each trade, it is accurate to state that 47% of the investors opened trades with bullish expectations and 52% with bearish.

From the overall spotted trades, 4 are puts, for a total amount of $277,888 and 15, calls, for a total amount of $1,640,334.

Predicted Price Range

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $260.0 to $400.0 for Eaton Corp during the past quarter.

Volume & Open Interest Development

Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Eaton Corp's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Eaton Corp's significant trades, within a strike price range of $260.0 to $400.0, over the past month.

Eaton Corp 30-Day Option Volume & Interest Snapshot

Biggest Options Spotted:

Symbol	PUT/CALL	Trade Type	Sentiment	Exp. Date	Ask	Bid	Price	Strike Price	Total Trade Price	Open Interest	Volume
ETN	CALL	TRADE	BULLISH	07/19/24	$19.3	$18.8	$19.2	$320.00	$606.7K	981	1.0K
ETN	PUT	SWEEP	BULLISH	07/19/24	$4.2	$3.7	$3.79	$280.00	$177.9K	1.9K	1
ETN	CALL	SWEEP	BULLISH	06/21/24	$31.5	$31.4	$31.5	$300.00	$157.5K	386	150
ETN	CALL	SWEEP	BULLISH	09/20/24	$8.4	$8.2	$8.2	$370.00	$124.6K	10	152
ETN	CALL	SWEEP	BEARISH	06/21/24	$23.4	$22.9	$23.4	$310.00	$117.0K	282	34

About Eaton Corp

Eaton is a diversified power management company operating for over 100 years. The company operates through various segments, including electrical Americas, electrical global, aerospace, vehicle, and eMobility. Eaton's portfolio can broadly be divided into two halves. One part of its portfolio is housed under its industrial sector umbrella, which serves a large variety of end markets like commercial vehicles, general aviation, and trucks. The other portion is Eaton's electrical sector portfolio, which serves data centers, utilities, and the residential end market, among others. While the company receives favorable tax treatment with its Ireland domicile, most of its operations are in the U.S.

After a thorough review of the options trading surrounding Eaton Corp, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Current Position of Eaton Corp

• Trading volume stands at 1,393,293, with ETN's price down by -0.25%, positioned at $313.95.
• RSI indicators show the stock to be may be overbought.
• Earnings announcement expected in 27 days.

What The Experts Say On Eaton Corp

Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $328.6.

• An analyst from Mizuho persists with their Buy rating on Eaton Corp, maintaining a target price of $340.
• An analyst from B of A Securities has decided to maintain their Buy rating on Eaton Corp, which currently sits at a price target of $330.
• An analyst from Barclays has elevated its stance to Equal-Weight, setting a new price target at $300.
• Consistent in their evaluation, an analyst from Goldman Sachs keeps a Buy rating on Eaton Corp with a target price of $328.
• Consistent in their evaluation, an analyst from Berenberg keeps a Buy rating on Eaton Corp with a target price of $345.

Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Eaton Corp with Benzinga Pro for real-time alerts.

Posted In: ETN