XOM Options Signal Bullish Momentum: Key Strikes and Trade Setups for 2026

• Exxon Mobil (XOM) trades at $121.12, up 0.49% with volume surging past 4.6M shares.
• Call open interest dominates at strikes like $123 and $122, while puts cluster heavily at $111–$120.
• MACD and RSI confirm bullish momentum, with Bollinger Bands hinting at a potential breakout.

Here’s the takeaway: XOM shows strong upside potential today. Options data and technicals align on a near-term rally, but traders should watch for a pullback below $117.76 to confirm the trend’s durability.

Bullish Sentiment in Options: Calls Outpace Puts at Key Strikes

The options market isn’t whispering—it’s shouting. For Friday’s expiration (Jan 2, 2026), the $123 call (XOM20260102C123) leads with 5,058 open contracts, followed by $122 (2,267 OI). Puts, meanwhile, pile up at $111 (4,989 OI) and $120 (1,182 OI). This isn’t just a call/put ratio skew (0.69 for open interest); it’s a vote of confidence. Big money is pricing in a 123–126 ceiling for now, while hedgers are bracing for a drop to $111. The danger? If XOM stumbles below $117.76 (middle Bollinger Band), that put-heavy zone could accelerate selling.

Company Resilience Fuels the Bull Case

Exxon’s recent 52-week high isn’t a fluke. Despite WTI crude falling 20% in 2025, XOM’s diversified operations—Guyana’s low-cost drilling, Permian Basin efficiency, and chemical margins—have insulated it from commodity swings. The 3.3% dividend yield and $30/barrel breakeven target by 2030 make this stock a defensive play in a shaky sector. Retail traders might be chasing the call action, but institutional money is betting on Exxon’s ability to outperform oil prices. The risk? Natural gas volatility or a sudden shift in AI-driven energy demand could disrupt the narrative.

Actionable Trades: Calls for Aggressive Bulls, Stock for Balanced Grinders

For options traders: Buy XOM20260102C123 if XOM breaks above today’s high of $121.79. The $123 strike sits just 1.6% above current price, where heavy open interest suggests liquidity and potential momentum. For a longer play, XOM20260109C127 (2143 OI) offers a 5% upside target with next Friday’s expiration.

Stock traders: Consider entry near $120.63 (today’s low) if support holds. A close above $121.796 (intraday high) would validate the bullish Kline pattern. First target: $123.75 (2.2% gain from current price). A breakdown below $117.04 (30D support) would signal caution.

Volatility on the Horizon: Prepare for a 2026 Showdown

XOM’s setup is classic 2025 energy: a resilient business model meets speculative options fervor. The MACD histogram (0.23) and RSI (63.68) suggest momentum is still building, but don’t ignore the puts at $111. If oil prices collapse or earnings miss expectations, that could trigger a sharp reversal. For now, the path of least resistance is higher—but keep a tight stop below $117.76. This is a stock where fundamentals and options sentiment are in sync, but volatility ahead means staying nimble.