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Dan Deming outlines HON call butterfly targeting $250 breakout; BAC risk-reversal to get put exposure; RTX options premium collection. Rick Ducat adds technical chart analysis.
Editorial companion
Dan Deming walked viewers through three option ideas on Schwab Network, zeroing in on Honeywell's call butterfly that aims to catch a breakout above $250. He pitched structured option exposure instead of outright stock risk, while Rick Ducat layered in chart-based timing and trade management. The segment matters because Honeywell is a bellwether in industrials, and the choice of options over stock reflects traders trying to buy upside with defined loss limits against a backdrop of weakening fundamentals and recent price volatility.
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Bullish Gator Snapshot
HON rates Neutral overall. The fundamental read is neutral: the company passes 6 of 9 quality tests on the Piotroski F-Score; balance sheet is in the Grey zone (Altman Z = 2.28); revenue is growing about 1.9% per year; net income is declining about 0.8% per year. The technical picture is neutral: price is 4.6% below the 200-day moving average; 3.3% above the 50-day; the 50/200 relationship is in a Death cross. Sentiment is bullish (composite 74/100), based on 4 news articles from recent coverage.