Dow component Honeywell International reported that it has won a $16-billion contract to build and design power systems for Airbus's A350 XWB aircraft, and may also score a contract to build the jet's radar systems. The move represents a shift from the way Airbus has previously worked with its suppliers by allowing Honeywell to take greater responsibility for to integrate the system into the aircraft. Previously, multiple suppliers worked on separate projects that were later integrated together. Dow component Boeing (BA) has taken a similarly holistic approach in building its new Dreamliner 787.
At last check, the shares of Honeywell are up nearly 2%. The stock is off its earlier highs, but is trading safely above its 80-day moving average a trendline that has capped the equity's progress since August 9. Meanwhile, option players remain enamored of the stock; its Schaeffer's put/call open interest ratio is 0.46, just 6 percentage points away from an annual low. HON's newly in-the-money September 57.50 call is the home of peak open interest for the front-month series, with 9,684 contracts in residence but that strike has seen volume of 1,168 cross the tape today, as some traders may be locking in profits (or rolling out their positions) ahead of this week's expiration.