How are CODI long call max profit and max loss calculated?

Max profit is unbounded; max loss equals the premium paid times 100. Breakeven is strike plus premium. For the CODI long call priced from the end-of-day chain at a 30-day expiry (ATM IV 78.20%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$210.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CODI long call?

The breakeven for the CODI long call priced on this page is roughly $14.10 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.

How does current CODI implied volatility affect this long call?

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.

CODI Long Call 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 long call on CODI?

A long call buys upside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes above the strike plus premium at expiration.

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 long call 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 long call structure on CODI specifically: CODI IV at 78.20% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, 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 long call setup

The CODI long call 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 $12.00 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)
Buy 1	Call	$12.00	$2.10

CODI long call risk and reward

Net Premium / Debit: -$210.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$210.00
Breakeven(s): $14.10
Risk / Reward Ratio: Unbounded

Max profit is unbounded; max loss equals the premium paid times 100. Breakeven is strike plus premium.

CODI long call payoff curve

Modeled P&L at expiration across a range of underlying prices for the long call 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%	-$210.00
$2.67	-77.8%	-$210.00
$5.32	-55.7%	-$210.00
$7.98	-33.6%	-$210.00
$10.64	-11.5%	-$210.00
$13.29	+10.6%	-$80.71
$15.95	+32.7%	+$184.95
$18.61	+54.8%	+$450.61
$21.26	+76.9%	+$716.27
$23.92	+99.0%	+$981.92

When traders use long call on CODI

Long calls on CODI express a bullish thesis with defined risk; traders use them ahead of CODI catalysts (earnings, product launches, macro events) when the expected upside justifies the premium and theta decay.

CODI thesis for this long call

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 long call expresses a directional view that the underlying closes above the strike plus premium at expiration, ideally with implied volatility holding or expanding to preserve extrinsic value through the hold period. Current CODI IV rank near 34.18% is mid-range against its 1-year distribution, so the IV signal is neutral; the long call 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 long call positions are structurally 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 long call 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 long call on CODI?: A long call on CODI is the long call strategy applied to CODI (stock). The strategy is structurally bullish: A long call buys upside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes above the strike plus premium at expiration. 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 long call max profit and max loss calculated?: Max profit is unbounded; max loss equals the premium paid times 100. Breakeven is strike plus premium. For the CODI long call priced from the end-of-day chain at a 30-day expiry (ATM IV 78.20%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$210.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CODI long call?: The breakeven for the CODI long call priced on this page is roughly $14.10 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 long call on CODI?: Long calls on CODI express a bullish thesis with defined risk; traders use them ahead of CODI catalysts (earnings, product launches, macro events) when the expected upside justifies the premium and theta decay.
How does current CODI implied volatility affect this long call?: 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.