The company expects to incur a one-time charge of roughly $470 million
Honeywell International Inc (NASDAQ:HON) stock is down 1.1% to trade at $196.92 at last glance, after the conglomerate noted it expects to incur a one-time charge of roughly $470 million in the fourth quarter to potentially settle a Flexjet lawsuit. The latter alleges Honeywell breached an aircraft engine maintenance services agreement.
The security has found support at the familiar $190 level, after late last month gapping to its lowest level since April. However, the conglomerate has struggled with a ceiling at the $204 region since the end of October, as well as overhead resistance from the 120-day moving average. HON carries a 6.8% deficit for 2025.
Options traders already lean overwhelmingly bullish toward the equity. This is per HON's 50-day call/put volume ratio of 7.35 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks higher than 92% of readings from the past year. Should this bullish sentiment unwind, it could mean more headwinds for the shares.
When weighing in on Honeywell stock's next moves, options look like a good way to go. The security's Schaeffer's Volatility Index (SVI) of 18% sits in the low 7th percentile of its annual range, meaning options traders are pricing in low volatility expectations.