Price Forecast:

Bullish Case: Strong operational recovery post-cyberincident, positive sentiment following expected earnings, and reduced implied volatility suggest potential upside. COOP's historical performance and call option activity demonstrate bullish market positioning.

Bearish Case: Heightened volatility and ongoing legal uncertainties may pressure COOP's price. Recent historical decline and substantial put option trading indicate market fears and potential downward adjustment in stock performance.

Potential Outcomes:

• Surge in stock price due to strong earnings (35%)
• Price stabilization around $95 with limited growth (30%)
• Decline attributed to ongoing legal issues (25%)
• Significant drop to $85 from renewed cybersecurity concerns (10%)

Trading Oracle: Consider a bullish strategy by executing a debit spread—buy $95 calls and sell $100 calls, capturing potential upside while hedging against volatility. Market signals and historical trends suggest a 35% chance of profit, targeting a high reward:risk ratio. Alternatively, given market uncertainty, a protective put could be employed around $90 to manage downside risk.

December 11, 2024