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Why HON Is an Excellent Covered Call Candidate Right Now Strong · 78/100
Honeywell International Inc (Industrials) · $229.26 ·
Analysis generated Jun 18, 2026 ·
Data as of market close Jun 18
Quick Take
HON is trading at $229.26 with RSI at 55 (neutral territory). Options IV is at 29% — 56% below its 30-day average of 65%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
55
IV Today
28.9%
IV vs 30d Avg
-56%
MACD
bullish
ADX
19
MFI
46
The Setup
HON Covered Call
LONG STOCK
100 shares @ $229.26
SHORT CALL
$250 Aug '26 · $4.95/sh
Net Cost
$22,431
Max Profit
+$2,569
Break-even
$224.31
Projected P&L at Target
+$2,569
(11.5%)
P&L at Expiry
P&L Scenarios
What happens at different HON prices by expiry:
| HON Price | Today | Jul 9 | Jul 30 | Aug 21 (exp) |
|---|---|---|---|---|
| $183 (-20%) | -$4,100 | -$4,092 | -$4,090 | -$4,090 |
| $195 (-15%) | -$2,981 | -$2,954 | -$2,944 | -$2,944 |
| $206 (-10%) | -$1,906 | -$1,839 | -$1,802 | -$1,798 |
| $218 (-5%) | -$910 | -$782 | -$680 | -$651 |
| $225 (-2%) | -$367 | -$200 | -$38 | +$36 |
| $229 (0%) ← now | -$33 | +$161 | +$366 | +$495 |
| $234 (+2%) | +$278 | +$496 | +$743 | +$954 |
| $241 (+5%) | +$695 | +$941 | +$1,242 | +$1,641 |
| $250 (+9%) ← target | +$1,165 | +$1,432 | +$1,768 | +$2,569 |
| $264 (+15%) | +$1,672 | +$1,928 | +$2,232 | +$2,569 |
| $275 (+20%) | +$1,953 | +$2,174 | +$2,405 | +$2,569 |
Why This Strategy, Why Now
- RSI at 55 — neutral-bullish
- IV -56% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 19 — 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.