Mr. Cooper Group Surges 5.69% as Mortgage Rates Plunge to 11-Month Low

Summary
• COOP trades at $214.15, up 5.69% from $202.61 previous close
• Intraday range spans $205.05 to $216.79, hitting 52W high of $216.79
• Mortgage rates drop 16 bps to 6.29%, sparking sector-wide optimism

Mr. Cooper Group’s (COOP) intraday rally reflects a seismic shift in mortgage finance as the 30-year fixed rate plunges to its lowest level since October 2024. The stock’s 5.69% surge aligns with broader sector momentum, driven by a weaker-than-expected August jobs report and a 16-basis-point rate drop. With COOP trading near its 52-week high and turnover surging to 631,028 shares, the market is recalibrating to a new era of affordability for homebuyers.

Mortgage Rate Drop Drives COOP's Sharp Intraday Rally
The 16-basis-point decline in the 30-year fixed mortgage rate to 6.29%—the largest one-day drop in over a year—has directly fueled COOP’s rally. As a mortgage finance leader, Mr. Cooper Group benefits from lower rates, which reduce refinancing costs and boost demand for home loans. The sector’s response is amplified by the $169 monthly savings for a $450,000 homebuyer, making affordability a critical tailwind. This rate shift, coupled with a weaker jobs report, has triggered a flight to quality in mortgage finance, with COOP’s 5.69% gain mirroring broader sector gains like Rocket Mortgage’s (RKLB) 6.59% surge.

Mortgage Finance Sector Rally in Sync with Rate Drop
The mortgage finance sector is in lockstep with COOP’s rally, as evidenced by Rocket Mortgage’s (RKLB) 6.59% intraday gain. The sector’s strength stems from the 16-basis-point rate drop, which has made refinancing more attractive and boosted homebuyer demand. Homebuilder ETF ITB’s 13% monthly gain further underscores the sector’s alignment with lower rates. COOP’s 5.69% move is not an outlier but a reflection of systemic tailwinds, with mortgage rates breaking out of the 6.5%–6.7% range that had constrained the sector for months.

Options Playbook: Leveraging COOP's Volatility with Strategic Calls and Puts
• 200-day MA: $126.04 (well below current price)
• RSI: 56.04 (neutral, no overbought/oversold signal)
• MACD: 6.28 (bullish divergence from signal line at 7.19)
• Bollinger Bands: Upper at $203.25 (below current price), middle at $189.78

COOP’s technicals suggest a continuation of its bullish momentum, with key support at $190.41 and resistance at $216.79. The stock’s 5.69% gain has pushed it into overbought territory on the MACD, but the RSI remains neutral, indicating room for further upside. The 200-day MA is a distant $126.04, reinforcing the stock’s strength. For leveraged exposure, the sector’s rally—led by RKLB’s 6.59% gain—highlights the importance of rate-driven momentum.

Top Call Option: COOP20250919C210
• Code: COOP20250919C210
• Type: Call
• Strike: $210
• Expiry: 2025-09-19
• IV: 61.92% (high volatility)
• Leverage: 16.36%
• Delta: 0.594 (moderate sensitivity)
• Theta: -0.665 (rapid time decay)
• Gamma: 0.0144 (strong price sensitivity)
• Turnover: 46,826
• Price change ratio: 275.36%

This call option offers a 16.36% leverage ratio and a 61.92% implied volatility, making it ideal for a 5% upside scenario. With a delta of 0.594, it balances sensitivity and risk, while the high gamma ensures responsiveness to COOP’s volatility. A 5% move to $224.86 would yield a payoff of $14.86 per contract, or 148.6% return on the $10.00 premium.

Top Put Option: COOP20250919P210
• Code: COOP20250919P210
• Type: Put
• Strike: $210
• Expiry: 2025-09-19
• IV: 72.94% (extreme volatility)
• Leverage: 20.81%
• Delta: -0.412 (moderate bearish exposure)
• Theta: -0.137 (slow time decay)
• Gamma: 0.0123 (moderate sensitivity)
• Turnover: 49,639
• Price change ratio: -66.99%

This put option provides 20.81% leverage and a 72.94% IV, ideal for hedging against a pullback. A 5% drop to $203.35 would yield a $6.65 payoff, or 66.5% return on the $10.00 premium. The -0.412 delta offers bearish exposure without excessive risk, while the high IV ensures liquidity.

Trading Hook: Aggressive bulls should target COOP20250919C210 into a break above $216.79. Conservative traders may hedge with COOP20250919P210 to protect against a reversal.

Backtest Mr. Cooper Group Stock Performance
It looks like we successfully located every date on which COOP.O rose at least 6 % from the previous day’s close (2022-01-01 → 2025-09-05) and stored those event dates for analysis. However, while running the dedicated event-analysis module, the service returned an unexpected internal error (“convert_statistics” not found). Because the error occurs inside the engine itself, repeated attempts produced the same result.Next best options:1. Run a custom strategy back-test instead (open a position on the close of each 6 %-surge day, exit after a fixed holding period or with stop/take-profit rules). • Advantage – you still get practical performance metrics and equity-curve visuals. • Limitation – slightly different methodology from an event study, but results are usually very close when the holding window is short (e.g. 3–10 trading days).2. Adjust the event definition and retry (e.g. 5 % daily surge or an intraday High ÷ Open filter) – this may bypass the bug if it is tied to certain data characteristics.3. Wait for the event-analysis module to be patched (I can create a tracking note and re-run automatically once the fix is deployed).Please let me know which path you prefer, or if you’d like to inspect the raw list of surge dates before deciding.

Act Now: COOP's Momentum Presents High-Reward Opportunities
COOP’s 5.69% rally is a direct response to the 16-basis-point mortgage rate drop, which has unlocked affordability for homebuyers and boosted sector demand. The stock’s proximity to its 52-week high and strong technicals suggest the move is sustainable, but traders must watch the $216.79 level for confirmation. Rocket Mortgage’s (RKLB) 6.59% surge reinforces the sector’s alignment with rate-driven momentum. Investors should prioritize COOP20250919C210 for aggressive upside or COOP20250919P210 for downside protection. With the 30-year rate at 6.29%, the mortgage finance sector is poised for further gains—act decisively before volatility wanes.