Step 1: Download GreenPois0n from the link given here.
Step 2: Connect your Verizon CDMA iPhone 4 via USB to your computer and click on “Jailbreak”
Step 3: Now follow the following onscreen instructions to enter DFU mode:
* Press and hold the sleep button for 2 seconds
* Continue holding sleep; press and hold home for 10 seconds.
* Release sleep button; continue holding home for 15 seconds.
Step 4: GreenPois0n will now start “Jailbreaking” your iPhone, untethered on 4.2.6.
Step 5: Your iPhone should now be successfully jailbroken on iOS 4.2.6. Now start “Loader” found on the homescreen and install Cydia.
Heres a Video If you Struggle or Unfamiliar with Jailbreaking: