Honeywell International Inc (NASDAQ:HON) is down 1.4% to trade at $231.14 this morning, after the aerospace and industrials name said it anticipates first quarter revenue to take a hit from the ongoing conflict in the Middle East. The company said it estimates its outlook for its 2026 sales to be between $38.8 billion and $39.8 billion.
HON is 5% off its March 2 record high of $248.18. The conglomerate giant has added 18% over the past 12 months, finally maintaining a break above the $220 ceiling in late January. Despite today's move lower, the shares are forming a bull flag pattern on the charts, with their 40-day moving average stepping up as support.
Options traders are bearish toward HON, per the equity's 10-day put/call volume ratio of 1.06 over at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 94% of annual readings.
Options could be an affordable way to go. HON stock's Schaeffer's Volatility Index (SVI) of 28% that stands higher than 29% of all other readings from the past year. In other words, near-term option traders are pricing in relatively low volatility expectations.
Lastly, Honeywell International stock's Schaeffer's Volatility Scorecard (SVS) comes in at 80 out of 100. In other words, shares have consistently realized higher volatility than its options have priced in over the past 12 months.
