Honeywell (HON) - Get Report  stock traded higher Friday after the company released better-than-expected quarterly results. The stock is likely to gain more ground soon, and investors can use stock options to profit from a bullish move.

The technology and manufacturing company Friday morning reported adjusted earnings per share of $1.67 on revenue of $9.8 billion, topping analysts' forecasts for $1.60 and $9.78 billion, respectively.

Honeywell shares gained 82 cents, or 0.8%, during Friday's regular session. The stock had slumped sharply in early October, based on tepid forecasts by Honeywell management, but the chart below shows that current price patterns are strong.

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The previous support level for the stock was slightly more than $111, but after the early October slump, the stock has traded below support. In the last four trading sessions there have been two bullish engulfing patterns, an unusual -- and extremely bullish -- combination. 

An opportunity to exploit this price movement is observed in the Nov. 18 stock options, which expire in 26 days. The following trades creates a synthetic long stock position:

     Buy the 110 call at an ask price of 1.49. Including trading fees, the cost is $158.

     Sell the 110 put at a bid of 2.71. Including trade fees, the credit is $262.

     Net credit = $104

The stock closed  Friday at $108.96,so the net option premium of $104 is exactly 1.04 points away from the strike price of these options. The overall position will follow the price movement in the stock point for point. As the stock price rises, the long call will gain one point in intrinsic value for each point of movement in the stock price. If the stock price declines, the short put has the same market risk as a covered call. Time decay will erode the premium level and even if the put moves into the money, it can be closed or rolled forward to avoid exercise.

The exceptionally strong double candlestick signal and the better-than-expected earnings news point to a strong possibility of the stock's price moving back above the previous level of support.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.

Besides blogging atTheStreet.com,Michael Thomsett alsoblogs at Options Money Maker,the Top Advisor's Corner at Stockcharts.comandSeeking Alpha.He has been trading options for 35 years and has published books with Palgrave Macmillan, Wiley, FT Press and Amacom, among other publishers.He currently is working on a new book on the topic of options math, to be published by Palgrave Macmillan in 2017.