Eaton has been running higher for months, and traders are looking for more upside.
OptionMonster's trade scanners yesterday detected a call roll in the diversified industrial manufacturer, which recently hiked its quarterly cash dividend by 11 percent. The investor sold 5,000 March 62.50 calls for $0.90 and bought 5,000 April 65 calls for $0.90.
It cost nothing to adjust the position, and the trader now has an additional month to profit from potential gains in the stock. Calls lock in the price where investors can buy shares, so they can generate nice leverage if Eaton keeps rising.