Why the HON Weekly
Options Trade was Originally Executed!
Honeywell International Inc.
(NYSE:HON) is a diversified conglomerate with
a strong presence in the aerospace and defense sectors. It’s also a significant
player in quantum computing, employing trapped-ion technology similar to IonQ
(NYSE:IONQ). Honeywell’s merger with Cambridge Quantum positions it for a
comprehensive quantum business.
As well, the company has significant
potential, particularly in the building technologies sector, with IoT
opportunities for future growth. Despite recent slower growth, Honeywell’s
expected improvement in revenue growth and earnings in 2023 and 2024 makes it a
promising options trade.
The company also exhibited $35.4 billion
revenue in 2022, a modest 3% year-over-year growth. It is backed by its foray
into quantum computing through strategic partnerships, which could boost its
International Inc. operates as a diversified technology and manufacturing
Aerospace segment offers auxiliary power units, propulsion engines, integrated
avionics, environmental control and electric power systems, engine controls,
flight safety, communications, navigation hardware, data and software
applications, radar and surveillance systems, aircraft lighting, advanced
systems and instruments, satellite and space components, and aircraft wheels
and brakes; spare parts; repair, overhaul, and maintenance services; and
thermal systems, as well as wireless connectivity and management services.
company's Honeywell Building Technologies segment provides software
applications for building control and optimization; sensors, switches, control
systems, and instruments for energy management; access control; video
surveillance; fire products; and installation, maintenance, and upgrades of
Performance Materials and Technologies segment offers automation control,
instrumentation, and software and related services; catalysts and adsorbents,
equipment, and consulting; and materials to manufacture end products, such as
bullet-resistant armor, nylon, computer chips, and pharmaceutical packaging, as
well as provides materials based on hydrofluoro-olefin technology.
company's Safety and Productivity Solutions segment provides personal
protection equipment, apparel, gear, and footwear; gas detection technology;
cloud-based notification and emergency messaging; mobile devices and software;
supply chain and warehouse automation equipment, and software solutions;
custom-engineered sensors, switches, and controls; and data and asset
management productivity software solutions.
was founded in 1885 and is headquartered in Charlotte, North Carolina.
The HON Weekly
Options Trade Explained.....
** OPTION TRADE: Buy HON SEP 22 2023 190.000 CALLS - price at last close was $2.30 - adjust accordingly.
Obviously the results will vary from trader to trader
depending on entry cost and exit price that was undertaken.
Entered the HON Weekly Options (CALL) Trade on Tuesday, August 29, 2023, for $2.37.
Sold the HON weekly options contracts on Monday, September 18, 2023 for $5.60; a potential profit of136%.
Don’t miss out on further trades – become a
Further Catalysts for the HON Weekly Options Trade…..
Honeywell Aerospace is back - Honeywell's Aerospace segment is its
largest by sales and profit. But it was the hardest hit during the COVID-19
pandemic. And for good reason.
is heavily dependent on the commercial airline industry. But it also provides
navigation systems, actuation systems, and a variety of other small and large
solutions for naval and commercial ground transportation, helicopters, the
defense industry, the oil and gas industry, and more. Simply put, if there's a
vessel that demands mechanical and electric work, Honeywell is probably
involved in some capacity.
market position makes it heavily dependent on the strength of the broader economy,
but more specifically, global commerce and the transportation of goods as well
as people traveling for work or leisure. Honeywell's second-quarter 2023
results indicate that the aerospace segment is officially back.
long-term strategy is centered on margin growth and
operating a more efficient, leaner business.
diversified industrials, Honeywell became clunky in years past and struggled to
achieve meaningful organic growth, often having to resort to acquisitions.
However, the company's 2023 guidance puts it close to its long-term targets.
And some segments, like Aerospace and Honeywell Building Technologies, have
already achieved segment margins above 25%.
operating margin sits at just under 20%. A 20% operating margin is excellent,
especially for a company with so many moving parts like Honeywell. It means
that the company is taking home 20 cents in operating income for every dollar
in revenue. So, although revenue hasn't changed much in 15 years, the company's
operating margin is up more than threefold.
income and growing earnings are far more important than revenue. It isn't too
hard for Honeywell to simply crank out more products and discount them to boost
sales. The real trick comes from getting more profit out of each dollar in
sales and then gradually increasing sales in lockstep with a stable operating
According to the issued ratings of 12 analysts in the last
year, the consensus rating for Honeywell International stock is Hold based on
the current 1 sell rating, 6 hold ratings and 5 buy ratings for HON. The
average twelve-month price prediction for Honeywell International is $215.07
with a high price target of $242.00 and a low price target of $180.00.
in commercial flight hours, strength in process solutions and UOP businesses
augur well for Honeywell’s growth. Solid operational execution, pricing actions
and cost-control measures continue to drive the company’s top line. HON’s
bullish forecast for 2023 holds promise.
International has a market cap of $123.70 billion, a P/E ratio of 23.06, a
P/E/G ratio of 2.27 and a beta of 1.07. The firm’s 50 day simple moving average
is $197.33 and its 200 day simple moving average is $195.38. The company has a
debt-to-equity ratio of 0.98, a quick ratio of 1.07 and a current ratio of
1.41. Honeywell International Inc. has a 1-year low of $166.63 and a 1-year high