How are CODI collar max profit and max loss calculated?

Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium. For the CODI collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 47.30%), the computed maximum profit is $35.50 per contract and the computed maximum loss is -$64.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CODI collar?

The breakeven for the CODI collar priced on this page is roughly $12.65 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.

How does current CODI implied volatility affect this collar?

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.

CODI Collar 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 $908.1M, a beta of 1.25 versus the broader market, a 52-week range of 4.58-13.24, average daily share volume of 924K, 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 collar on CODI?

A collar pairs long stock with a protective out-of-the-money put financed by a short out-of-the-money call, capping both tails of the position around the current spot.

CODI snapshot

As of August 14, 2026, spot at $12.72, ATM IV 47.30%, IV rank 22.61%, expected move 13.56%. The collar 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 collar structure on CODI specifically: IV regime affects collar pricing on both sides; compressed CODI IV at 47.30% typically pushes the short call premium to roughly offset the long put cost, 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 collar setup

The CODI collar 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 100 shares	Stock	$12.72	long
Sell 1	Call	$13.00	$0.20
Buy 1	Put	$12.00	$0.13

CODI collar risk and reward

Net Premium / Debit: -$1,264.50
Max Profit (per contract): $35.50
Max Loss (per contract): -$64.50
Breakeven(s): $12.65
Risk / Reward Ratio: 0.550

Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium.

CODI collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-99.9%	-$64.50
$2.82	-77.8%	-$64.50
$5.63	-55.7%	-$64.50
$8.44	-33.6%	-$64.50
$11.26	-11.5%	-$64.50
$14.07	+10.6%	+$35.50
$16.88	+32.7%	+$35.50
$19.69	+54.8%	+$35.50
$22.50	+76.9%	+$35.50
$25.31	+99.0%	+$35.50

When traders use collar on CODI

Collars on CODI hedge an existing long CODI stock position; the long put sets a floor while the short call finances it, often run as a near-zero-cost hedge during expected volatility windows.

CODI thesis for this collar

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 collar hedges an existing long CODI position with a protective put while financing the put cost via a short call; when the premiums roughly offset, the collar acts as a near-zero-cost insurance band around the current spot. 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 collar positions are structurally neutral (protective); 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. Always rebuild the position from current CODI chain quotes before placing a trade.

Frequently asked questions

What is a collar on CODI?: A collar on CODI is the collar strategy applied to CODI (stock). The strategy is structurally neutral (protective): A collar pairs long stock with a protective out-of-the-money put financed by a short out-of-the-money call, capping both tails of the position around the current spot. 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 collar max profit and max loss calculated?: Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium. For the CODI collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 47.30%), the computed maximum profit is $35.50 per contract and the computed maximum loss is -$64.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CODI collar?: The breakeven for the CODI collar priced on this page is roughly $12.65 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 collar on CODI?: Collars on CODI hedge an existing long CODI stock position; the long put sets a floor while the short call finances it, often run as a near-zero-cost hedge during expected volatility windows.
How does current CODI implied volatility affect this collar?: 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.