XOM Options Signal Bullish Momentum: Key Strike Levels and Trading Setups for Jan 23, 2026

• XOM surges 1.17% to $135.21, outpacing its 30D moving average of $122.32.
• Options call open interest dominates (624,799 vs. 391,112 puts), with heavy demand at $137–$150 strikes.
• Block trades hint at big money moves: $278K spent on March 20 calls at $140, while puts at $130 show defensive positioning.

Here’s the takeaway: XOM’s options activity and technicals are painting a clear picture of upside potential—but with caution needed near key levels. Let’s break it down.

Bullish Sentiment Locked in OTM Calls, But Puts Signal Caution

Options traders are piling into out-of-the-money calls, with XOM20260130C137 (next Friday expiry) leading the pack at 2,592 open contracts. The top OTM calls ($137–$150) suggest a belief that XOM could test its 52-week high of $144+ by mid-February. But don’t ignore the puts: XOM20260130P130 (6,865 OI) and $125 puts (2,085 OI) show hedgers bracing for a pullback. The 0.63 put/call OI ratio isn’t extreme, but it’s enough to flag potential volatility.

Block trades add intrigue. A $278K bet on XOM20260320C140 (March expiry) signals long-term conviction, while a $213K purchase of XOM20260320P130 suggests a range-bound strategy. These moves hint at a “buy the dip, sell the rally” playbook—but only if XOM holds above its 200D MA of $114.42.

Earnings Optimism vs. Analyst Skepticism: What’s the Real Story?

The news flow is mixed. XOM is expected to beat Q4 estimates despite a YoY earnings drop, which could fuel short-term euphoria. But Morgan Stanley’s cut to a $134 price target (from $137) tempers that optimism. The key here? Investors are pricing in transitory strength, not a long-term rebound. The 3.0% dividend yield and 19.4 P/E ratio still look attractive, but the options market isn’t fully pricing in a “new normal”—yet.

Actionable Trades: Calls for the Bold, Puts for the Pragmatic

For options traders, the most compelling setup is a bull call spread using XOM20260130C137 (strike price $137) and a lower strike like $134. With XOM trading at $135.21, this gives you leverage if the stock breaks above its 30D MA of $122.32. If you’re bearish, a put debit spread with XOM20260130P130 and $125 puts could cap losses if the stock dips.

Stock traders should watch two levels:

• Entry: Consider buying near $134.90 (intraday low) if the 200D MA at $114.42 holds.
• Targets: First resistance at $137 (call-heavy zone), then $140 (earnings event horizon).
• Stop: Below $133.64 (previous close) would trigger a reevaluation.

Volatility on the Horizon: Navigating XOM’s Path to Earnings

With earnings on January 30, the options market is already pricing in a 10–15% move. The RSI at 71.9 suggests near-term overbought conditions, so don’t chase the rally blindly. But the MACD histogram (up 0.98) and bullish Kline pattern mean the trend is your friend—for now. The real test will come if XOM breaks above $137; that could ignite a short squeeze in the heavy call OI. Conversely, a drop below $130 would validate the puts and force a re-rating of the stock’s value.

Bottom line: XOM is in a sweet spot for traders who balance aggression with caution. The options data and technicals align on a bullish bias, but the news flow reminds us that this isn’t a “forever” rally. Position yourself with a mix of calls and spreads, and keep an eye on that $134 price target—it might not hold for long.