CODI Iron Condor Strategy
CODI (Compass Diversified), in the Industrials sector, (Conglomerates industry), listed on NYSE.
Compass Diversified is a private equity firm specializing in add on acquisitions, buyouts, industry consolidation, recapitalization, late stage and middle market investments. It seeks to invest in niche industrial or branded consumer companies, manufacturing, distribution, consumer products, business services sector, safety & security, electronic components, food, foodservice. The firm prefers to invest in companies based in North America. It seeks to invest between $100 million and $800 million in companies with an EBITDA between $15 million to $80 million. It seeks to acquire controlling ownership interests in its portfolio companies and can make additional platform acquisitions. The firm prefer to have majority stake in companies.
CODI (Compass Diversified) trades in the Industrials sector, specifically Conglomerates, with a market capitalization of approximately $893.1M, a beta of 1.28 versus the broader market, a 52-week range of 4.58-12.64, average daily share volume of 1.3M, a public-listing history dating back to 2006, approximately 3K 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 1.28 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.
Current CODI snapshot
As of May 15, 2026, spot at $12.02, ATM IV 78.20%, IV rank 34.18%, expected move 22.42%. The iron condor on CODI below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 98-day expiry.
Why this iron condor structure on CODI specifically: CODI IV at 78.20% is mid-range versus its 1-year history, so the credit collected on a CODI iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 22.42% (roughly $2.69 on the underlying). The 98-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 $12.02 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 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With CODI near $12.02, 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 98-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 | $1.48 |
| Buy 1 | Call | $13.00 | $1.48 |
| Sell 1 | Put | $11.00 | $1.30 |
| Buy 1 | Put | $11.00 | $1.30 |
CODI iron condor 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 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% | $0.00 |
| $2.67 | -77.8% | $0.00 |
| $5.32 | -55.7% | $0.00 |
| $7.98 | -33.6% | $0.00 |
| $10.64 | -11.5% | $0.00 |
| $13.29 | +10.6% | $0.00 |
| $15.95 | +32.7% | $0.00 |
| $18.61 | +54.8% | $0.00 |
| $21.26 | +76.9% | $0.00 |
| $23.92 | +99.0% | $0.00 |
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 $9.33 on the downside to $14.71 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 34.18% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on CODI should anchor more to the directional view and the expected-move geometry. 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 trading near $12.02, the strikes shown on this page are snapped to the nearest listed CODI chain strike and the premiums come straight from the end-of-day 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 end-of-day chain at a 30-day expiry (ATM IV 78.20%), 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 iron condor?
- The breakeven for the CODI iron condor priced on this page is no defined breakeven on the modeled curve at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current CODI market-implied 1-standard-deviation expected move is approximately 22.42%; 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 78.20% with IV rank near 34.18%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.