CPS Long Call Strategy

CPS (Cooper-Standard Holdings Inc.), in the Consumer Cyclical sector, (Auto - Parts industry), listed on NYSE.

Cooper-Standard Holdings Inc., through its subsidiary, Cooper-Standard Automotive Inc., designs, manufactures, and sells sealing, fuel and brake delivery, and fluid transfer systems. The company's sealing systems include obstacle detection sensor systems, dynamic seals, variable extrusion systems, static seals, specialty sealing products, encapsulated glasses, stainless steel trims, FlushSeal systems, and textured surfaces with cloth appearance. Its fuel and brake delivery systems comprise chassis and tank fuel lines and bundles, direct injection and port fuel rails, metallic brake lines and bundles, tube coatings, quick connects, low oligomer multi-layer convoluted tubes, and brake jounce lines. The company's fluid transfer systems consist of heater/coolant hoses, turbo charger hoses, quick connects, charged air cooler ducts/assemblies, DPF and SCR emission lines, secondary air hoses, degas tanks, brake and clutch hoses, air intake and charge systems, transmission oil cooling hoses, and multilayer tubing for glycol thermal management. Its products are primarily used in passenger vehicles and light trucks that are manufactured by automotive original equipment manufacturers and replacement markets. The company operates in the United States, Mexico, China, Poland, Canada, Germany, France, and internationally.

CPS (Cooper-Standard Holdings Inc.) trades in the Consumer Cyclical sector, specifically Auto - Parts, with a market capitalization of approximately $516.3M, a beta of 2.01 versus the broader market, a 52-week range of 19.32-47.98, average daily share volume of 224K, a public-listing history dating back to 2010, approximately 22K full-time employees. These structural characteristics shape how CPS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.01 indicates CPS has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.

What is a long call on CPS?

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 CPS snapshot

As of May 15, 2026, spot at $27.13, ATM IV 64.40%, IV rank 5.92%, expected move 18.46%. The long call on CPS 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 34-day expiry.

Why this long call structure on CPS specifically: CPS IV at 64.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a CPS long call, with a market-implied 1-standard-deviation move of approximately 18.46% (roughly $5.01 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CPS expiries trade a higher absolute premium for lower per-day decay. Position sizing on CPS should anchor to the underlying notional of $27.13 per share and to the trader's directional view on CPS stock.

CPS long call setup

The CPS 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 CPS near $27.13, the first option leg uses a $27.13 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CPS chain at a 34-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 CPS shares for the stock leg in covered calls and collars).

ActionTypeStrike / BasisPremium (est)
Buy 1Call$27.13N/A

CPS long call risk and reward

Net Premium / Debit
N/A
Max Profit (per contract)
Unbounded
Max Loss (per contract)
Unbounded
Breakeven(s)
None on modeled curve
Risk / Reward Ratio
N/A

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

CPS long call payoff curve

Modeled P&L at expiration across a range of underlying prices for the long call on CPS. 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.

When traders use long call on CPS

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

CPS thesis for this long call

The market-implied 1-standard-deviation range for CPS extends from approximately $22.12 on the downside to $32.14 on the upside. A CPS 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 CPS IV rank near 5.92% 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 CPS at 64.40%. As a Consumer Cyclical name, CPS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CPS-specific events.

CPS 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. CPS positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CPS alongside the broader basket even when CPS-specific fundamentals are unchanged. Long-premium structures like a long call on CPS 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 CPS chain quotes before placing a trade.

Frequently asked questions

What is a long call on CPS?
A long call on CPS is the long call strategy applied to CPS (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 CPS stock trading near $27.13, the strikes shown on this page are snapped to the nearest listed CPS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CPS 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 CPS long call priced from the end-of-day chain at a 30-day expiry (ATM IV 64.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CPS long call?
The breakeven for the CPS long call 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 CPS market-implied 1-standard-deviation expected move is approximately 18.46%; 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 CPS?
Long calls on CPS express a bullish thesis with defined risk; traders use them ahead of CPS catalysts (earnings, product launches, macro events) when the expected upside justifies the premium and theta decay.
How does current CPS implied volatility affect this long call?
CPS ATM IV is at 64.40% with IV rank near 5.92%, 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.

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