Shares of Dow component Honeywell International are fractionally higher in early trading after the company announced that it intends to purchase privately-held Hand Held Products for $390 million. Hand Held will become part of Honeywell's automation and control solutions business.

Technically speaking, HON is in a bit of a tough situation. The stock is struggling with resistance in the 62 region, and is in danger of setting a double top in the area. The security's last attempt to breakout above the 62 level in late July resulted in the stock plunging nearly 13% during the following month to retest support at the 54 level.

Options players are looking for a repeat performance, as the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.72 ranks above 71% of all those taken during the past year. However, 10 of the 11 analysts following the shares rate them a buy or better, with only 1 hold rounding out the listing. This backdrop leaves HON on shaky ground over the intermediate-term.