What is your opinion?
The Future Network of Unmanned Aerial Vehicles.
Honeywell (NSYE: HON) is tapping into a new market of the aviation and aerospace industry which they are seeing could potentially provide incredible opportunity in the years to come. Having recently launched its smallest, lightest satellite communications system that id directly focused on Unmanned Aerial Vehicles (UAV). The technology only weighing 2.2 pounds will provide the same connective capabilities that large aircraft are able to access for small unmanned vehicles.
This technology makes features like in-flight Wi-Fi or fleet tracking available to operators. This also creates a smoother channel for communication for aircraft and air traffic controllers and operators.
“Transportation as we know it is changing rapidly, and the need for connectivity is only becoming more important. As platforms evolve and new vehicles start operating both on land and in the air, it’s critical that satellite communications technology evolves alongside them,”
Amanda King, vice president and general manager, Aerospace Connected Secure Solutions, Honeywell Connected Enterprise.
The world and network of Unmanned Aerial Systems (UAS) is an intricate and diverse technological advancement that has incredible applications for the future. Many people refer to these flying devices as drones when used for personal use. Although the use for unmanned aerial vehicles expands much beyond the use of just personal enjoyment. The military has been using unmanned aerial systems for years prior to the adoption by the civilian market.
Now as the technology is advancing and the systems are becoming more reliable and efficient the use of commercial applications are being developed. The long run discussion of if airline will operate without pilots has been going on for years. Many organization have began discussing what would be necessary to be able to develop a system of various tools to be able to safely operate aircraft in an integrated system together.
Many of the unmanned aircraft that operate today are still currently being operated remotely by an individual who is properly trained in operating the equipment. The vision that some futurist share is developing a system of unmanned aircraft that are able to operate remotely without the direct intervention of an individual. Creating a network of aerial aircraft will required the aid of new application to be able to facilitate the infrastructure.
UAV Applications for Commercial Use
Airlines are almost a taboo in today’s market. Institutions and large investment firms have dropped their rating and are changing their reviews from long to more of a hold position. They are not urging their clients to start to dump assets at these lows yet they are also not running to try and pick up more shares with the current uncertainty looming in the air.
Companies such as Amazon (AMZN) have already released information into the market that shows that they are testing technology that would allow them to be able to deliver products using UAV. I am sure you are familiar with the video the went spreading through the internet with a Mother-ship design with hundreds of drones being released from underneath.
Although this video was made for entertainment purposes it does bring up the question of the reality of this idea and the opportunities that it could potentially bring. With the use of drones now being tested for masses the need for tracking and analyzing these devices can now be made possible with the technology being created by Honeywell.
Companies that are testing new vehicles capable of flying 4-8 travelers are being used for inter-city transfers. Uber (UBER) has been working on their system that would allow for travelers to request a flight using the app the are familiar with using. As they start to expand their fleet the use of the satellites created by Honeywell would allow for them to be able to monitor flight patterns and time and mileage reports for billing purposes.
As we are moving into a new age of aviation the need for commercial tracking will help keep people safe.
Not to mention that the guest onboard of the Uber UAV will most likely want access to Wi-FI capabilities. The benefits of this satellite is that it will have the capabilities to offer guest Wi-Fi access also. This makes the overall experience for the guest onboard more enjoyable. As a result they are more likely to use the service again themselves and also they will recommend the service to another individual. Overall these kinds of features that are going to exclusively service this emerging technology will continue to enhance the attractiveness of the market.
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Personal Use of Drones
Personal use of drones have dramatically increased over the last decade as now the technology has become accessible for a very reasonable price point. With more individuals being able to access UAVs this means that properly protecting their vehicles while also protecting the others property is key as more operators are entering the market.
We have already seen UAV being used for filming videos. The capabilities of the UAV allow for the individual to be able to take photo’s unlike ever before. As more individuals start to enter the market the rules and regulations for what is permitted is constantly adapting. We can already see how the FAA has created a license requirement for operators to maintain depending on the size and speed of the drone, in addition to where they choose to operate the vehicle. For now the technology that Honeywell is creation shows to provide greater applications for commercial UAV usage.
Although with the rate of change in our world there is a potential that individuals may one day purchase full sized drones capable of operating autonomously on their command. Similar to how general aviation includes a market of aircraft operators and independent aircraft owners the same may apply for the unmanned aerial system.
Individual may one day seek to purchase their own version of a vehicle capable of flying on its own. This would require little to no training on how to operate and provide an ease of service to its guest unlike any other. As more and more aircraft take to the skies and less experience pilots are taking flight the need for reliable systems becomes more relevant. As we transition into a future were ease of function is a leading design factor, its important that reliability and safety remain the primary requirement.
Technical Analysis on Honeywell (NYSE: HON)
Near the end of May we posted a chart that we had marked up on for Honeywell (NYSE: HON) for demonstration purposes. We use technical analysis to be able to determine high probability trades based on historical and analytical data. When trading publicly traded companies there are three main factors that can affect the price of a stock.
The first is any current new events that are recently making a sudden change in price. The next is the fundamental elements of how the company is performing and the overall elements that make up the organization from cash flow to management to even culture. The last element that we take a look at is the technical portion of trading.
Taking a technicians perspective to the market allows for individuals to effectively analyze the quantitative properties of the underlying asset. This is able to show us the average movement in a given period of time for the asset. This kind of information will assist in being able to determine the time period of duration of the trade that would be appropriate for your price target.
Having a price target is important for having a clear goal. Many novice investors will put on new positions unsure of when they will close the positions. They may potential earn 8-20% gains and then close out the position feeling they have figured it out when it could have just been beginners luck. Other examples show individuals having their position jump up over 100% gains and yet the do not secure any profits and then come back the next day to see some of their earnings taken back by the market.
Accurate investors define their risks and their profit goals for every trade that they enter. They also allow some room for volatility to play a role and understand that although they have defined goals that is just based on their perception and analysis of the current market. The possibility for things going against our plan will always remain present.
We used the Fibonacci Channel tool from TradingView to be able to create parameters to understand the trading pattern of Honeywell (HON). We can see how based from the lows of 2020 we have been in a steady uptrend pattern since. We came down on a low yesterday and have had spike up to another bearish candle. As we look out towards the July Expiration Date option we can see the range which it is highly probably for the stock to trade within.
As we enter the trading range between the high of around $164 and $137 we have a wide window to trade within. For a less risk exposed strategy creating a wide iron condor would allow you to collect premium as long as the stock stays between the two strike prices. The strike prices can vary depending on the kind of risk to reward ratio you are looking to achieve. The beauty of option trading is that it allows you to be able to fine tune your strategy for a outcome that is going to be best for your comfort level.
There of course is no perfect strategy or trading platform or concept to make your investing absolutely perfect. Every investor will face obstacles and challenges in their trading journey. The important part to remember is that you will get past those hurdles and you will come out a stronger more disciplined and successful trader. Part of our mission towards helping you on your trading journey is providing you with the right tools and software to get the most of your trading.
Aside from investing in U.S. based assets we strongly believe there is a benefit in investing in Foreign and Crypto Currencies. To learn more on how you can start to actively trade currencies for a living, click on the link below to learn more
Disclosures
Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options: https://www.theocc.com/components/docs/riskstoc.pdf
Air Market Group content is provided solely by Air Market Group LLC and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, transaction, or investment strategy is suitable for any person. Trading securities can involve high risk and the loss of any funds invested. Air Market Group, through its content, financial programming, or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon, or risk tolerance. Air Market Group is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparison, statistics, or other technical data, if applicable, will be supplied upon request. Multi-leg option strategies incur higher transaction costs as they involve multiple commission charges. Air Market Group is not a licensed financial advisor, registered investment advisor, or registered broker-dealer. Options involve risk and are not suitable for all investors. Please read the Characteristics and Risks of Standardized Options before deciding to invest in options.
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