Cooper Companies (COO) Surges 6.11% on Activist Pressure and Strategic Overhaul Hopes

Summary
• The Cooper Companies (COO) rockets 6.11% intraday to $75.46, defying a 35% YTD decline.
• Activist campaigns from Browning West and Jana Partners demand board reshuffles and business splits.
• Technicals show a short-term bearish trend but long-term ranging, with RSI at 57.08 and MACD crossing above signal line.

Cooper Companies’ stock is surging amid dual activist campaigns targeting governance and strategic missteps. With a 6.11% intraday gain, the stock trades near its 52-week high of $106.63, fueled by calls for board refreshment and potential spinoffs. The move reflects investor optimism about unlocking value in CooperVision and CooperSurgical, despite a decade-low P/E of 16x.

Activist Campaigns Ignite Strategic Overhaul Hopes
The 6.11% surge in COO stems from dual activist campaigns by Browning West and Jana Partners, both demanding governance reforms and strategic repositioning. Browning West, a $500M+ stakeholder, argues Cooper’s underperformance—despite $4.1B revenue—stems from poor capital allocation, lack of strategic focus, and board complacency. Jana Partners, meanwhile, pushes for a potential merger of CooperVision with Bausch + Lomb to unlock synergies. These campaigns have galvanized short-term optimism, with investors betting on a potential $300M–$500M synergy boost from business separation or consolidation.

Contact Lens Sector Gains Momentum as JNJ Leads
The contact lens sector, led by Johnson & Johnson (JNJ) with a 1.24% intraday gain, is gaining traction amid innovation in silicone hydrogel lenses and myopia correction. Bausch + Lomb’s Rochester facility is expanding production of next-gen lenses, including hyaluronic acid-based products slated for 2028. While COO’s CooperVision faces operational headwinds, the sector’s long-term growth tailwinds—driven by rising myopia rates and demand for premium lenses—suggest potential for a rerating if strategic clarity emerges.

Options Playbook: Capitalizing on COO's Volatility
• MACD: 0.3298 (bullish crossover), Signal Line: 0.2835, Histogram: 0.0463 (positive divergence)
• RSI: 57.08 (neutral), Bollinger Bands: 73.77 (upper), 71.01 (middle), 68.25 (lower)
• 200D MA: 75.57 (current price at 75.46, near key resistance)
• Support/Resistance: 71.69–71.82 (30D), 72.99–73.61 (200D)

COO’s technicals suggest a short-term bullish setup, with price testing the 200D MA and RSI hovering near neutral. The stock’s 6.11% intraday gain has pushed it toward the upper Bollinger Band, indicating potential for a continuation if it breaks above $76.03. For options traders, two contracts stand out:

• COO20251219C75 (Call, $75 strike, 12/19 expiry):
- IV: 44.73% (moderate), Leverage Ratio: 17.95%, Delta: 0.5600 (moderate sensitivity), Theta: -0.1187 (high time decay), Gamma: 0.0414 (high sensitivity to price moves), Turnover: 1,633
- Payoff: At 5% upside (target $79.23), payoff = $4.23/share. This call offers high leverage and gamma, ideal for a short-term rally.

• COO20251219P75 (Put, $75 strike, 12/19 expiry):
- IV: 48.22% (moderate), Leverage Ratio: 20.60%, Delta: -0.4406 (moderate sensitivity), Theta: -0.0176 (low time decay), Gamma: 0.0384 (moderate sensitivity), Turnover: 131,806
- Payoff: At 5% downside (target $71.71), payoff = $3.29/share. This put offers downside protection with high liquidity and moderate gamma.

Action: Aggressive bulls should target COO20251219C75 for a 5% upside play, while cautious investors may hedge with COO20251219P75. Watch for a break above $76.03 to confirm bullish momentum.

Backtest The Cooper Companies Stock Performance
I attempted to run the complete “6 % intraday-surge” event study for The Cooper Companies (COO.O) from 1 Jan 2022 to 21 Nov 2025. • Historical daily open-high-low-close data were downloaded successfully. • Each session’s intraday return was computed as (Close ÷ Open – 1). • When that return ≥ 6 %, the trading date was to be treated as an “event day” and fed into the event-backtest engine.During the final step the event-backtest engine threw an internal error (NameError followed by a ValueError originating from an empty sequence). This typically occurs when the engine receives an empty event-date list – i.e. the data contain no trading days that closed ≥ 6 % above the same-day open for the entire 2022-to-present window. With an empty event set the engine cannot calculate event statistics, so it aborts.Next options (please choose one):1. Lower the threshold – e.g. analyse 4 % or 3 % intraday surges instead of 6 %. 2. Define the surge relative to the previous day’s close (gap-and-go approach) rather than same-day open. 3. Widen the sample by extending the look-back window (e.g. start from 2017). 4. Abort the task.Let me know which path you’d like to take, or if you prefer a different specification.

Act Now: Strategic Overhaul Could Fuel COO's Next Leg Higher
The 6.11% surge in COO reflects investor confidence in activist-driven reforms, but sustainability hinges on board action. With JNJ (JNJ) up 1.24% and the sector gaining traction, COO’s potential to reposition as a pure-play vision care company could unlock value. Investors should monitor the 200D MA at $75.57 and 12/19 options expiry for directional clarity. Watch for $76.03 breakout or $71.44 breakdown to dictate next steps.