Honeywell International Inc. (NYSE: HON) — This diversified technology and manufacturing company is the world’s largest maker of cockpit controls, small jet engines and climate-control equipment. Because of its quality management and consistently high returns, HON has been a favorite of mine for years. In December 2009, I chose it as one of top picks for 2010. By May, it had made our 12-month target, and then the market sold off taking Honeywell with it.
But the deep “V” bottom in August, and the subsequent tight channel trend that ran HON from $44 to over $50, illustrates a classic big-cap bull market reversal. Last week, the stock drove to new highs.
Many investors hold HON for the long term. But those who bought it early this year may want to hedge their position by writing options against it as it reaches our trading target of $54.
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