Spotlight on Eaton Corp: Analyzing the Surge in Options Activity

Investors with a lot of money to spend have taken a bearish stance on Eaton Corp ETN.

And retail traders should know.

We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with ETN, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 14 uncommon options trades for Eaton Corp.

This isn't normal.

The overall sentiment of these big-money traders is split between 35% bullish and 64%, bearish.

Out of all of the special options we uncovered, 3 are puts, for a total amount of $228,510, and 11 are calls, for a total amount of $691,799.

Expected Price Movements

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $240.0 to $300.0 for Eaton Corp during the past quarter.

Insights into Volume & Open Interest

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 $240.0 to $300.0, over the past month.

Eaton Corp 30-Day Option Volume & Interest Snapshot

Largest Options Trades Observed:

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.

Eaton Corp's Current Market Status

• Trading volume stands at 628,648, with ETN's price down by 0.0%, positioned at $277.96.
• RSI indicators show the stock to be may be overbought.
• Earnings announcement expected in 78 days.

Professional Analyst Ratings for Eaton Corp

In the last month, 3 experts released ratings on this stock with an average target price of $287.0.

• An analyst from UBS has decided to maintain their Buy rating on Eaton Corp, which currently sits at a price target of $305.
• Consistent in their evaluation, an analyst from Citigroup keeps a Buy rating on Eaton Corp with a target price of $310.
• Maintaining their stance, an analyst from RBC Capital continues to hold a Sector Perform rating for Eaton Corp, targeting a price of $246.

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.