CODI Iron Condor 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 iron condor on CODI?
An iron condor sells a call spread and a put spread at strikes outside spot, collecting net premium that is kept if the underlying stays inside the inner short strikes.
CODI snapshot
As of August 14, 2026, spot at $12.72, ATM IV 47.30%, IV rank 22.61%, expected move 13.56%. The iron condor 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 iron condor structure on CODI specifically: CODI IV at 47.30% is on the cheap side of its 1-year range, which means a premium-selling CODI iron condor collects less credit per unit of strike-width risk, 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 iron condor setup
The CODI iron condor 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) |
|---|---|---|---|
| Sell 1 | Call | $13.00 | $0.20 |
| Buy 1 | Call | $14.00 | $0.03 |
| Sell 1 | Put | $12.00 | $0.13 |
| Buy 1 | Put | $11.00 | $0.01 |
CODI iron condor risk and reward
- Net Premium / Debit
- +$28.50
- Max Profit (per contract)
- $28.50
- Max Loss (per contract)
- -$71.50
- Breakeven(s)
- $11.72, $13.29
- Risk / Reward Ratio
- 0.399
Max profit equals the net credit times 100 inside the inner strikes; max loss equals wing width minus credit times 100. Two breakevens at inner strikes plus and minus the credit.
CODI iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor 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% | -$71.50 |
| $2.82 | -77.8% | -$71.50 |
| $5.63 | -55.7% | -$71.50 |
| $8.44 | -33.6% | -$71.50 |
| $11.26 | -11.5% | -$45.96 |
| $14.07 | +10.6% | -$71.50 |
| $16.88 | +32.7% | -$71.50 |
| $19.69 | +54.8% | -$71.50 |
| $22.50 | +76.9% | -$71.50 |
| $25.31 | +99.0% | -$71.50 |
When traders use iron condor on CODI
Iron condors on CODI are a delta-neutral premium-collection structure that profits if CODI stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
CODI thesis for this iron condor
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 iron condor is a delta-neutral premium-collection structure that pays off when CODI stays inside the inner short strikes through expiration; the wing width should reflect the trader's tolerance for the maximum loss scenario where the underlying breaches an outer strike. 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 iron condor positions are structurally neutral / range-bound; 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. Short-premium structures like a iron condor on CODI carry tail risk when realized volatility exceeds the implied move; review historical CODI earnings reactions and macro stress periods before sizing. Always rebuild the position from current CODI chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on CODI?
- A iron condor on CODI is the iron condor strategy applied to CODI (stock). The strategy is structurally neutral / range-bound: An iron condor sells a call spread and a put spread at strikes outside spot, collecting net premium that is kept if the underlying stays inside the inner short strikes. 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 iron condor max profit and max loss calculated?
- Max profit equals the net credit times 100 inside the inner strikes; max loss equals wing width minus credit times 100. Two breakevens at inner strikes plus and minus the credit. For the CODI iron condor priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 47.30%), the computed maximum profit is $28.50 per contract and the computed maximum loss is -$71.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CODI iron condor?
- The breakeven for the CODI iron condor priced on this page is roughly $11.72 and $13.29 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 iron condor on CODI?
- Iron condors on CODI are a delta-neutral premium-collection structure that profits if CODI stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current CODI implied volatility affect this iron condor?
- 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.