January 2021 has already brought about an onslaught of unpredictable moments in the stock market — like the uncharacteristic surge in GameStop and AMC spurred on by thousands of reddit users. Since these short squeezes and rallies won’t be sustainable in the long run, I’ve been searching for some undervalued stocks on the rise in February 2021…
And I just found them.
Today, I’m covering two old-school stocks on the rise right now, and they could soar with bullish momentum all the way to March.
The first stock on the rise in February 2021 is as sweet as its name suggests: Honeywell.
Honeywell International Inc. (NYSE: HON) is an American multinational multi-industry company with a strong belief in creating the future instead of waiting for it. The company operates in four different areas: aerospace, building technologies, performance materials/tech and safety and productivity solutions.
If you look at HON’s daily chart, you’ll see it has been moving sideways in a consolidation phase for a few months now. Usually when something like this happens, the underlying momentum and energy in the stock begins to coil like a spring.
And when the stock breaks out, either higher or lower, the spring unleashes all that momentum, which becomes a strong driving force for the price.
If you look closer at HON’s chart, you’ll notice that some investors bought 1,500 of the March calls on Jan. 15… That amounts to a $1.6 million bet.
Even though seeing something like this on a name like Honeywell is odd, I understand why this investor made such a big move.
It’s stocks like this one — the ones investors love to ignore — that end up creating huge paydays for options traders because the contracts aren’t that expensive due to low implied volatility.
And I have a sneaking suspicion that the same investor just spent another $1.5 million on this other rising stock…
Make sure to watch my video below to get the complete list of stocks on the rise in February 2021. As always, leave your thoughts in the comments section below and don’t forget to subscribe to my YouTube channel to stay up to date with all things options trading.
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