Cooper Companies Stock Surges on Jana Partners Merger Proposal

A $14 billion medical device company just became activism's hottest target. The market surged—but the real volatility is just beginning.

October 20, 2025

A $14 billion medical device company just became activism's hottest target. The market surged—but the real volatility is just beginning.

🕒 Market Overview: Jana Partners demands Cooper Companies split operations or merge contact lens unit with Bausch + Lomb.

🔄 Sector Insight: Stock surged over 6% premarket as activist campaigns historically drive 30-50% premiums in eventual acquisitions.

💰 Today's Trade Idea: Bull Call Spread on COO with defined risk-reward captures potential upside as strategic transformation unfolds.

SMART TRADE IDEA

Bull Call Spread on COO

Trade Setup:  Buy $80 Call / Sell $95 Call, May 15, 2026, expiration

  • Cost:  $5.00 ($500 per spread)

  • Max Profit:  $10 ($1,000 per spread)

  • Breakeven:  $85 on COO on May 15, 2026.

Management Plan: Exit at 50% loss, roll up, or take profits if COO’s share price reaches $100 or higher.

Jana Partners is not accumulating COO shares for a small return. The short leg of the $85-$100 vertical bull call spread is below the technical resistance levels at the respective $112.38 and $115.90 respective highs from September 2024 and September 2021. The 1:2 risk-reward ratio is attractive in the current environment.

NOTE: Remember, options trading involves substantial risk and is not suitable for all investors. Consider your investment objectives, financial resources, and experience level before implementing this or any options strategy.

DISCLOSURE: Trade recommendations may have changed since publication. Evaluate current market prices and risk/reward before acting. Trading involves significant risk and is not suitable for everyone. This is not personalized investment advice. Past performance doesn't guarantee future results. Publisher and contributors may hold positions in recommended securities. Readers assume full responsibility for their trading decisions. Consult a financial professional before investing.

Andy Hecht | Smart Analysis

Wall Street veteran and analyst covering technical and fundamental factors in markets across all asset classes for over four decades.

The favorable regulatory environment under the Trump administration supports increased M&A activity, and we have already seen earnings soar at the leading U.S. financial institutions. Accroding the the latest quarterly reports, investment banking fees have soared at JP Morgan, Bank of America, Morgan Stanley, Citigroup, Wells Fargo, and US Bankcorp. The trend is likely to continue in the current regulatory environment.

Cooper Companies (COO) is an interesting case as the company’s stock has more upside potential and the Jana Partners stake could send COO to challenge the record high.

COO had been in a bearish trend, making lower highs, but the recent decline stopped just above critical technical support at the October 2022 low of $61.05 when it fell to $61.77 in August 2025. The shares have recovered to over the $75 level on the recent Jana Partners investment stake. Technical resistance is at the September 2024 high of $112.38 and the September 2021 record peak of $115.90 per share. The May 15, 2026, $80-$95 COO vertical bull call spread at $5 or lower has at least a risk-reward ratio of 1:2.

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