Trading a CODI straddle lets you take a pure volatility position on Compass Diversified Holdings without committing to a direction. Compass Diversified Holdings's straddle involves buying (or selling) a call and a put at the same strike and expiration, profiting when the stock moves more (or less) than the combined premium implies. Use our scanner to evaluate CODI straddle pricing in real time and find the moments when expected moves are mispriced.
A long straddle on CODI profits from large moves in either direction and is a classic play into binary events like earnings, product announcements, or macro releases. A short straddle profits when Compass Diversified Holdings stays range-bound and implied volatility contracts. The breakeven points are simple: strike plus total premium on the upside, strike minus total premium on the downside. Comparing the CODI straddle price to historical realized moves helps you judge whether the market is overpaying or underpaying for volatility.
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. The firm invests through its balance sheet and typically holds investments between five to seven years. Compass Diversified was founded in 2005 and is based in Westport, Connecticut with an additional office in Costa Mesa, California.
Earnings, product cycles, macro prints — any time volatility itself is the trade, the CODI straddle is the cleanest expression of that view. Our scanner prices every CODI straddle against historical realized moves, flags expirations where the market is overpaying or underpaying for vol, and ranks setups by breakeven width and IV rank. Whether you're long a CODI straddle into a catalyst or short a CODI straddle to harvest decay, the options straddle setups that matter are all in one place.
