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Why HON Is an Excellent Covered Call Candidate Right Now Strong · 78/100
Honeywell International Inc (Industrials) · $218.33 ·
Analysis generated Oct 30, 2026 ·
Data as of market close Oct 30
Quick Take
HON is trading at $218.33 with RSI at 58 (neutral territory). Options IV is at 27% — 50% below its 30-day average of 55%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
58
IV Today
27.1%
IV vs 30d Avg
-51%
MACD
bullish
ADX
12
MFI
65
The Setup
HON Covered Call
LONG STOCK
100 shares @ $218.33
SHORT CALL
$235 Dec '26 · $4.32/sh
Net Cost
$21,401
Max Profit
+$2,099
Break-even
$214.01
Projected P&L at Target
+$2,099
(9.8%)
P&L at Expiry
P&L Scenarios
What happens at different HON prices by expiry:
| HON Price | Today | Nov 16 | Dec 2 | Dec 18 (exp) |
|---|---|---|---|---|
| $175 (-20%) | -$3,939 | -$3,935 | -$3,935 | -$3,935 |
| $186 (-15%) | -$2,861 | -$2,847 | -$2,843 | -$2,843 |
| $197 (-10%) | -$1,817 | -$1,773 | -$1,752 | -$1,751 |
| $207 (-5%) | -$848 | -$751 | -$677 | -$660 |
| $214 (-2%) | -$321 | -$186 | -$58 | -$5 |
| $218 (0%) ← now | +$0 | +$160 | +$330 | +$432 |
| $223 (+2%) | +$295 | +$477 | +$687 | +$869 |
| $229 (+5%) | +$684 | +$890 | +$1,148 | +$1,524 |
| $235 (+8%) ← target | +$971 | +$1,188 | +$1,464 | +$2,099 |
| $240 (+10%) | +$1,187 | +$1,404 | +$1,675 | +$2,099 |
| $251 (+15%) | +$1,526 | +$1,718 | +$1,931 | +$2,099 |
| $262 (+20%) | +$1,733 | +$1,883 | +$2,023 | +$2,099 |
Why This Strategy, Why Now
- RSI at 58 — neutral-bullish
- IV -50% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 12 — range-bound, perfect for selling calls
- No squeeze — no imminent breakout
Key Risks
HON has bullish momentum (MACD). If a positive catalyst emerges (earnings beat, product launch), the stock could gap past your strike. Consider rolling the call up if HON approaches the strike before expiry.