HON Forecast + Trading Strategies


Bullish Case: Recent acquisitions ($1.9B CAES, $4.95B from Carrier) boost HON's portfolio, enhancing growth potential within aerospace and automation segments. It's backed by a healthy backlog of $32B. Low implied volatility reflects market confidence.


Bearish Case: HON faces integration risks from recent acquisitions and market saturation in key segments. Implied volatility higher than historical suggests caution. Price action remains flat, indicating possible stagnation or pullback.


Potential Outcomes:

1. Successful integration and growth (65%) driven by acquisitions and aerospace demand.

2. Stagnation or decline (35%) due to integration challenges and market saturation.


Trading Oracle: Sell short-term put credit spreads. Target $210P while buying the $205P. Benefits from low implied volatility with historical mean reversion, offering positive edge. 30-60 day outlook. This strategy provides high probability-of-profit, leveraging the current low volatility environment.


July 16, 2024


Honeywell International Forecast

HON      Honeywell International











Correlated Assets

Assets that tend to move strongly with HON



EXR Forecast + Options Trading Strategies   EXR  Extra Space Storage (0.94)


NSA Forecast + Options Trading Strategies   NSA  National Storage Affiliates (0.93)


IDCC Forecast + Options Trading Strategies   IDCC  Interdigital (0.92)


AMKR Forecast + Options Trading Strategies   AMKR  AMKOR Technology (0.9)


RY Forecast + Options Trading Strategies   RY  Royal Bank Of Canada (0.9)



Uncorrelated Assets

Assets with little price relationship to HON



WMG Forecast + Options Trading Strategies   WMG  Warner Music (0.0)


SPT Forecast + Options Trading Strategies   SPT  Sprout Social (0.01)


BILI Forecast + Options Trading Strategies   BILI  Bilibili (-0.01)


XRX Forecast + Options Trading Strategies   XRX  Xerox (0.01)


GIS Forecast + Options Trading Strategies   GIS  General Mills (-0.01)



Anticorrelated Assets

Assets that tend to move strongly against HON



SQQQ Forecast + Options Trading Strategies   SQQQ  ProShares UltraPro Short QQQ (-0.82)


SPXS Forecast + Options Trading Strategies   SPXS  Direxion Daily S&P 500 Bear 3X Shares (-0.83)


SH Forecast + Options Trading Strategies   SH  ProShares Short S&P500 (-0.83)


REK Forecast + Options Trading Strategies   REK  ProShares Short Real Estate (-0.86)


DRV Forecast + Options Trading Strategies   DRV  Direxion Daily Real Estate Bear 3X Shares (-0.88)





Become a more profitable investor with AI optimized trading strategies






×

Chat with HON


 Ask any question about HON!