Spotlight on Eaton Corp: Analyzing the Surge in Options Activity

Investors with a lot of money to spend have taken a bullish 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 10 uncommon options trades for Eaton Corp.

This isn't normal.

The overall sentiment of these big-money traders is split between 50% bullish and 50%, bearish.

Out of all of the special options we uncovered, 7 are puts, for a total amount of $1,119,970, and 3 are calls, for a total amount of $117,705.

Projected Price Targets

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $270.0 to $330.0 for Eaton Corp during the past quarter.

Insights into Volume & Open Interest

Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.

This data can help you track the liquidity and interest for Eaton Corp's options for a given strike price.

Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Eaton Corp's whale activity within a strike price range from $270.0 to $330.0 in the last 30 days.

Eaton Corp Option Activity Analysis: Last 30 Days

Biggest Options Spotted:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Ask Bid Price Strike Price Total Trade Price Open Interest Volume
ETN PUT TRADE BULLISH 10/18/24 $10.5 $10.4 $10.4 $300.00 $358.8K 902 717
ETN PUT SWEEP BULLISH 10/18/24 $5.8 $4.7 $5.6 $280.00 $249.2K 1.2K 703
ETN PUT TRADE BEARISH 10/18/24 $10.5 $10.4 $10.5 $300.00 $142.8K 902 272
ETN PUT TRADE BULLISH 10/18/24 $10.6 $10.4 $10.4 $300.00 $125.8K 902 15
ETN PUT SWEEP BEARISH 10/18/24 $7.9 $7.8 $7.9 $290.00 $116.1K 802 173

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 US.

Having examined the options trading patterns of Eaton Corp, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance

Present Market Standing of Eaton Corp

  • Trading volume stands at 458,533, with ETN's price up by 1.08%, positioned at $330.79.
  • RSI indicators show the stock to be may be approaching overbought.
  • Earnings announcement expected in 84 days.

What Analysts Are Saying About Eaton Corp

A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $324.4.

  • Maintaining their stance, an analyst from JP Morgan continues to hold a Overweight rating for Eaton Corp, targeting a price of $325.
  • An analyst from Wolfe Research downgraded its action to Underperform with a price target of $312.
  • An analyst from Mizuho has revised its rating downward to Buy, adjusting the price target to $355.
  • An analyst from Argus Research has decided to maintain their Buy rating on Eaton Corp, which currently sits at a price target of $350.
  • Consistent in their evaluation, an analyst from HSBC keeps a Hold rating on Eaton Corp with a target price of $280.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for Eaton Corp, Benzinga Pro gives you real-time options trades alerts.

Market News and Data brought to you by Benzinga APIs
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Posted In: OptionsMarketsBZI-UOA
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