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HON Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 73/100
Honeywell International Inc (Industrials) · $235.04 ·
Analysis generated Apr 13, 2026 ·
Data as of market close Apr 13
Quick Take
HON is trading at $235.04 with RSI at 55 (neutral territory). Options IV is at 0% — 100% below its 30-day average of 56%. 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
0%
IV vs 30d Avg
-100%
MACD
bullish
ADX
27
MFI
59
The Setup
HON Covered Call
LONG STOCK
100 shares @ $235.04
SHORT CALL
$255 Jun '26 · $0.32/sh
Net Cost
$23,472
Max Profit
+$2,028
Break-even
$234.72
Projected P&L at Target
+$2,028
(8.6%)
P&L at Expiry
P&L Scenarios
What happens at different HON prices by expiry:
| HON Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $188 (-20%) | -$4,669 | -$4,669 | -$4,669 | -$4,669 |
| $200 (-15%) | -$3,494 | -$3,494 | -$3,494 | -$3,494 |
| $212 (-10%) | -$2,318 | -$2,318 | -$2,318 | -$2,318 |
| $223 (-5%) | -$1,145 | -$1,143 | -$1,143 | -$1,143 |
| $230 (-2%) | -$449 | -$440 | -$438 | -$438 |
| $235 (0%) ← now | -$0 | +$22 | +$31 | +$32 |
| $240 (+2%) | +$423 | +$468 | +$497 | +$502 |
| $247 (+5%) | +$973 | +$1,064 | +$1,155 | +$1,207 |
| $255 (+8%) ← target | +$1,429 | +$1,554 | +$1,705 | +$2,028 |
| $259 (+10%) | +$1,560 | +$1,685 | +$1,832 | +$2,028 |
| $270 (+15%) | +$1,771 | +$1,864 | +$1,952 | +$2,028 |
| $282 (+20%) | +$1,813 | +$1,886 | +$1,956 | +$2,028 |
Why This Strategy, Why Now
- RSI at 55 — neutral-bullish
- IV -100% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 27 — moderate trend
- 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.
ADX at 27 indicates a moderately strong trend. In trending markets, covered calls cap your upside too early. Use a higher strike to leave more room.