Sunday Special ( Charts ) JAN 4, 2026

Hello traders, how was your holiday break?
Anything good to report?
$DJI ( ▲ 0.55% ) Weekly -1.33%
$SPY ( ▼ 0.01% ) Weekly -1.22%
$QQQ ( ▼ 0.57% ) Weekly -1.54%
$IWM ( ▲ 1.09% ) Weekly -2.09%

When we look at the Weekly charts of all 4 of those indexes we see one thing
All of them are close to hitting their 20 day EMA’s
Which is where all 4 have had the most bounces off of over the past 3 years
The good::: We could be reaching oversold territory
The bad::::: Mommm, dad, are we there yet?????? 🙃 
One challenge is these last 2 weeks had no volume due to being the holidays
We can’t forget that
The other challenge is well, we’re just sideways here

“The Usual Suspects”
$AMZN ( ▲ 1.96% ) Weekly -2.59%
$CAT ( ▲ 1.95% ) Weekly +2.64%
$GE ( ▼ 2.84% ) Weekly +1.90%
$GOOG ( ▲ 1.11% ) Weekly +0.10%
$HD ( ▲ 3.01% ) Weekly -1.13%
$JPM ( ▲ 0.86% ) Weekly -0.74%
$META ( ▼ 0.41% ) Do I need to say it again???
$TSLA ( ▲ 1.02% ) Weekly -7.81%
$WMT ( ▲ 0.31% ) Weekly -0.91%

Right now our favorite sideways stock is $JPM ( ▲ 0.86% )  
What we love the most about it is that we had a small breakout from its box, and it’s now retesting the top of its box
A “Old Skool Trading Rule” is this:::
“Old Resistance becomes new Support”
We want price to stop in this area and reverse north
If not then we’ll watch for it and take action from there
Short term Support right now is at::: 318~~~310~~~305
That 310 would not only put it in the middle of its box but right at the 50 Day SMA which could offer a stronger bounce
We need to keep that in mind here
There is some heavy Options activity for the APR and the JUN expirations at the 350 strike for both months
We like that as we’re wanting to begin implementing Calendar Spreads for weekly income generation. The APR EXP is looking good for a Long date….And the JUN EXP could be where we land with our LEAPS
Currently JPM is up 167% over the past 3 years
JPM earnings are less than 2 weeks away on JAN 13, 2026

$NFLX ( ▼ 0.22% ) in a perfect world this is an inverse Cup with Handle waiting to happen
We like how it seems to be leveling out here
Should it see a bounce we’ll be wanting in
The MAR monthlies have a fight going on at the 100 strike
The Bulls are in charge there
Where it really gets interesting is the MAR 105’s, the activity is noticeably higher
The calls are priced very favorably
The 110’s have a monster influx of activity
Some of those could most likely be hedge flow

$WMT ( ▲ 0.31% ) Like JPM it broke out of its box and is now trying to make old resistance new support……. I see WMT as one that will just continue over time
After we get a reversal we plan on going into it with weekly Calendars WHEN we get a north bound trend again

$GOOG ( ▲ 1.11% ) The FEB Monthlie Calls at the 340 are strong, very strong
Or as Darth Vader said “The Force is strong with this one”
It could be that earnings is FEB 2, 2026
The Monthlies EXP is FEB 20, 2026

$CAT ( ▲ 1.95% ) in no mans land here. So why are we checking it out then?
Because on Friday it had a strong bounce off of the 20 Day EMA right as it was turning down to meet the 50 day SMA
The Options for MAR 2026 hold some weight, and that deserves our attention
Earnings is JAN 30, 2026
Bull Call Spreads are in fashion here in case it should have a pullback we will have down side protection
Should CAT shoot north a trader could drop the short strike and ride the long…..
Plus taking Bull Call Spreads ~~~reduces capital tremendously on this one~~~
Kind of a no brainer
Lets shorten our time span an go up to week prior to earnings
The reason being is we wont get “bit” by Theta or “Crushed” by I.V. should it miss
Again, kind of a no brainer here
We like the JAN 23, 2026 Bull Call Spreads at the 600 / 605

$GE ( ▼ 2.84% ) unless your new here you already know that GE is the very first stock I ever bought back in the summer of 2008… We are BIGG fans of it here at theoptionscoach.net and have been playing it regularly during our time together.. And if you are new welcome, we’re glad your here
GE reports earnings on JAN 21, 2026, that’s soon
Lets put Theta to work for us here
Strangles for FEB 6, 2026 at the 320 / 325 are 23.00 at the MID

$CRDO ( ▲ 0.42% ) is a free bonus here
I was scanning the other night when I came across this beauty
Then Friday morning it popped and it popped big
Would of loved to of found it before then but here we are
We like how it’s at the bottom of its box and bouncing north
Options numbers are strong:
Here’s the catch::
CRDO doesn’t have Options for MAR or APR of 2026
And earnings is on MAR 4, 2026
So as a stock it looks good here
If you want Options its either take the FEB 20, 2026 EXP date or play it out until MAY
I’d most likely play the shorter dated ones with protection
Bull call Spreads are “funkee” here at the moment for FEB 20, 2026
Price is only in $5.00 increments and the current price is $144.00
Should some buying come in we like the 145 / 150 Bull Call Spreads
If we went out to MAY going Blind or Naked shows interest at the 170, it picks up at the 200’s and the far OTM calls for the 240’s are highly active
They’re priced fair, but not free, something is going on
Now the “Catch” on that:::::: I.V. is high, up over 88%
Should CRDO break the bottom of its box we would look for support down at the 50 Day SMA
As I type that I’m seeing why the stock popped up over 5% on Friday morning before retreating back. This one is a “hidden gem”
Somebody knows something

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~~~WARNING~~~~~~~WARNING~~~~~ WARNING~~~~~
TALK OF VIO — LENCE

Way back when I was a cop, we had a case, it wasn’t good
At that time I was bothered by how a human could do what they did to another human. That was something I saw often, but this one really hit me
A buddy of mine shared something, he said “Evil will always outdo evil”
And he was right

A few weeks ago there was the Bondi Beach shootings
Jewish lives were targeted and senselessly taken that day due to nothing more than their religious beliefs. That one bothered me deeply, it should bother all of us
The killings that day were done out of pure evil, evil at its worst
Over what someone’s beliefs are and nothing more

Do me a favor please? Share this newsletter with your people
Not for likes or follows, but so that they too can join others that pray for lives lost senselessly and just as important, that they, that we, are all reminded during these uncertain times, that in the end, good triumphs over evil

The Options Coach