Closed Momentum Options Trades for 2026: 0-0 (0%); 2025: 54-20 (73%, 17 triple-digit winners); 2024: 77-17 (82%, 38 triple-digit winners). Please remember, all “Exit Targets” and “Stop Targets” are targets. You should not have any “Stops” entered to close any alerts or “Limit Orders” in your brokerage account unless we list one. We will send out an “Alert” or “New Alert” if we want you to close a position or if a new position comes out. Otherwise, follow instructions at all times in the updates on Monday’s and Thursday’s along with Text Alerts and videos throughout the week.
Special Note: With a ton of new subscribers, we wanted to explain our current strategy going into 2026. The portfolio will show just one or two contracts for the directional call and put Alerts instead of position sizing in the $1,000-$2,000 range. We are doing this to show beginning traders how to start off small with option trading, and more importantly, we want to be extra careful going into earnings season and with volatility slightly picking up.
At some point, the market will take a breather, and we will look for bearish positions when the time is right. For now, we are still bullish, but cautious. Remember, we don’t care if the market is going up or down, because traders can profit both ways. We are just expressing caution as volatility could pick up in the coming weeks with earnings season around the corner.
Goodyear Tire & Rubber (GT, $9.09, down $0.17)
Option: GT February 10 calls
Expiration Date: February 20th, 2026
Entry Option Price: $0.35 (1/6/2026)
Current Option Price: $0.40
Exit Target: $0.70
Return: 14%
Stop Target: None
Action: These calls options had unusual options activity of 19,000 contracts on Tuesday. This is indicating traders are following our December 24th lead for a near-term run to $10 as we also have a covered call Alert that is currently in play.
Friday’s peak hit $9.34 with lower resistance at $9.25-$9.50 and the 200-day moving average getting cleared but holding. Closes above the latter gets $10 in play. Support is at $8.75-$8.50. Earnings are due out February 5th.
Snap (SNAP, $8.62, down $0.17)
Option: SNAP March 10 calls
Expiration Date: March 20th, 2026
Entry Option Price: $0.44 (1/6/2026)
Current Option Price: $0.57
Exit Target: $0.90
Return: 30%
Stop Target: 45 cents (Stop Limit)
Action: Set a Stop Limit at 45 cents. We usually wait until we are up 50%-100% but given the close above 15 on the VIX, we want to be extra cautious with our bullish positions and directional alerts. The calls did reach a peak of 72 cents for a gain of 64% but faded into the close and why we have the Stop Limit in place.
Wednesday’s high tagged $9.07 with key resistance at $9 getting topped but holding. Closes above $9.25 and the November 12th peak at $9.13 would likely lead to a quick pop to $10. Support is at $8.50-$8.25 and the 200-day moving average. Earnings are due out February 10th.
AT&T (T, $23.97, down $0.37)
Option: T February 26 calls
Expiration Date: February 20th, 2026
Entry Option Price: $0.35 (12/24/2025)
Current Option Price: $0.20
Exit Target: $0.70
Return: -43%
Stop Target: None
Action: Exit the Alert if the stock falls below $23.50. The calls will likely lose another nickel but having stop limit orders on “cheap” options can be risky given scalpers and other market conditions. Obviously, we don’t mind placing Stop Limits on profitable Alerts (see above), but it is best to exit an option when the technical setup your were looking for doesn’t play out.
Key support at $24 failed to hold with the session low at $23.90. A move below $23.50 could lead to $22-$21.50 and fresh 52-week lows. Resistance is at $24.75-$25. Earnings are due out January 28th.
