CODI Bull Call Spread Strategy
CODI (Compass Diversified), in the Industrials sector, (Conglomerates industry), listed on NYSE.
Compass Diversified functions as a private equity firm, specializing in late-stage and middle-market investments. The company employs various strategies, including leveraged buyouts, industry consolidation efforts, recapitalizations, and strategic add-on acquisitions. Their investment focus is on North American enterprises, particularly those in niche industrial or branded consumer segments. They also target businesses within manufacturing, distribution, general consumer products, business services, safety & security, electronic components, as well as the food and foodservice sectors. Typically, Compass Diversified allocates between $100 million and $800 million per investment, seeking companies with an EBITDA ranging from $15 million to $80 million. A key aspect of their approach is to secure controlling or majority ownership interests in their portfolio companies, often leveraging these as platforms for subsequent acquisitions.
CODI (Compass Diversified) trades in the Industrials sector, specifically Conglomerates, with a market capitalization of approximately $956.2M, a beta of 1.25 versus the broader market, a 52-week range of 4.58-13.25, average daily share volume of 903K, a public-listing history dating back to 2006, approximately 4K full-time employees. These structural characteristics shape how CODI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.25 places CODI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CODI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a bull call spread on CODI?
A bull call spread buys an at-the-money call and sells an out-of-the-money call at a higher strike for defined risk and defined reward bounded by the strike width.
CODI snapshot
As of August 14, 2026, spot at $12.72, ATM IV 47.30%, IV rank 22.61%, expected move 13.56%. The bull call spread on CODI below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 7-day expiry.
Why this bull call spread structure on CODI specifically: CODI IV at 47.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a CODI bull call spread, with a market-implied 1-standard-deviation move of approximately 13.56% (roughly $1.72 on the underlying). The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CODI expiries trade a higher absolute premium for lower per-day decay. Position sizing on CODI should anchor to the underlying notional of $12.72 per share and to the trader's directional view on CODI stock.
CODI bull call spread setup
The CODI bull call spread below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With CODI at $12.72 on that close, the first option leg uses a $13.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CODI chain at a 7-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 CODI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $13.00 | $0.20 |
| Sell 1 | Call | $13.00 | $0.20 |
CODI bull call spread risk and reward
- Net Premium / Debit
- $0.00
- Max Profit (per contract)
- $0.00
- Max Loss (per contract)
- $0.00
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
Max profit equals strike width minus net debit times 100; max loss equals net debit times 100. Breakeven is long-call strike plus net debit.
CODI bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on CODI. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -99.9% | $0.00 |
| $2.82 | -77.8% | $0.00 |
| $5.63 | -55.7% | $0.00 |
| $8.44 | -33.6% | $0.00 |
| $11.26 | -11.5% | $0.00 |
| $14.07 | +10.6% | $0.00 |
| $16.88 | +32.7% | $0.00 |
| $19.69 | +54.8% | $0.00 |
| $22.50 | +76.9% | $0.00 |
| $25.31 | +99.0% | $0.00 |
When traders use bull call spread on CODI
Bull call spreads on CODI reduce the cost of a bullish CODI stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
CODI thesis for this bull call spread
The market-implied 1-standard-deviation range for CODI extends from approximately $11.00 on the downside to $14.44 on the upside. A CODI bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on CODI, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current CODI IV rank near 22.61% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on CODI at 47.30%. As a Industrials name, CODI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CODI-specific events.
CODI bull call spread positions are structurally moderately bullish; the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. CODI positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CODI alongside the broader basket even when CODI-specific fundamentals are unchanged. Long-premium structures like a bull call spread on CODI are particularly exposed to IV-crush risk through scheduled events (earnings, FDA decisions, central-bank meetings) where IV typically contracts post-event regardless of the directional outcome. Always rebuild the position from current CODI chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on CODI?
- A bull call spread on CODI is the bull call spread strategy applied to CODI (stock). The strategy is structurally moderately bullish: A bull call spread buys an at-the-money call and sells an out-of-the-money call at a higher strike for defined risk and defined reward bounded by the strike width. With CODI stock at $12.72 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed CODI chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are CODI bull call spread max profit and max loss calculated?
- Max profit equals strike width minus net debit times 100; max loss equals net debit times 100. Breakeven is long-call strike plus net debit. For the CODI bull call spread priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 47.30%), the computed maximum profit is $0.00 per contract and the computed maximum loss is $0.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CODI bull call spread?
- The breakeven for the CODI bull call spread priced on this page is no defined breakeven on the modeled curve at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The CODI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 13.56%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a bull call spread on CODI?
- Bull call spreads on CODI reduce the cost of a bullish CODI stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
- How does current CODI implied volatility affect this bull call spread?
- CODI ATM IV is at 47.30% with IV rank near 22.61%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.