This morning, Dow component Honeywell International announced that it has signed a $1-billion deal to supply avionics on new aircraft and provide maintenance on AirTrain's entire fleet through 2030. The company will supply the firm with the full Honeywell avionics portfolio for new aircraft -- up to 150 Boeing 737s. In addition, HON will provide maintenance services for all Honeywell equipment on AirTran's entire fleet -- up to 250 aircraft -- including avionics, lighting, mechanical components, Auxiliary Power Unit and wheels and brakes.

Technically speaking, the shares of HON have been grinding sideways between support at the 54 level and resistance at the 62 level since early May. However, the stock is now hovering close to its 10-week and 20-week moving averages. These intermediate-term trendlines had supported the shares from mid-August 2006 through August 2007.

Meanwhile, options players are extremely skeptical of the shares. Schaeffer's put/call open interest ratio rests at 0.85 and is higher than 86% of all those taken during the past 52 weeks.