ADW Capital (NYSE: CODI) reports neutral call option trades and 3.75M indirect shares
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
Compass Diversified Holdings had a Form 4 filed by entities associated with ADW Capital Partners, L.P., which is the record and direct beneficial owner of the reported securities. All positions are held indirectly through ADW Capital structures, and each reporting person disclaims beneficial ownership except to the extent of their pecuniary interest.
The filing shows a neutral options strategy on Common Shares. On May 29, 2026, the group sold 10,000 "Call Option (Obligation to Sell)" contracts at $0.74 per option, with a strike price of $20.00 and expiration on January 15, 2027, referencing 1,000,000 Common Shares. On the same date, they bought 10,000 "Call Option (Right to Buy)" contracts at $3.66 per option, with a strike price of $10.00 and the same expiration, also referencing 1,000,000 Common Shares.
After these trades, the entities report indirect ownership of 3,750,000 Common Shares and 40,000 contracts for each of the call option positions. The options are described as freely exercisable, and all activity occurred through indirect ownership interests rather than personal holdings of Adam D. Wyden.
Positive
- None.
Negative
- None.
Insider Trade Summary
3 transactions reported
Mixed
3 txns
Insider
ADW Capital Management, LLC, ADW Capital Partners, L.P., Wyden Adam D
Role
null | null | null
Bought
10,000 shs ($37K)
Sold
10,000 shs ($7K)
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Purchase | Call Option (Right to Buy) | 10,000 | $3.66 | $37K |
| Sale | Call Option (Obligation to Sell) | 10,000 | $0.74 | $7K |
| holding | Common Shares | -- | -- | -- |
Holdings After Transaction:
Call Option (Right to Buy) — 40,000 shares (Indirect, See Footnotes);
Call Option (Obligation to Sell) — 40,000 shares (Indirect, See Footnotes);
Common Shares — 3,750,000 shares (Indirect, See Footnotes)
Footnotes (1)
- This statement is being jointly filed by and on behalf of each of ADW Capital Partners, L.P., a Delaware limited partnership ("ADW Capital Partners"), ADW Capital Management, LLC, a Delaware limited liability company ("ADW Capital Management"), and Adam D. Wyden. ADW Capital Partners is the record and direct beneficial owner of the securities covered by this statement. ADW Capital Management is the general partner and investment manager of, and may be deemed to beneficially own securities owned by, ADW Capital Partners. Mr. Wyden is the sole manager of, and may be deemed to beneficially own securities owned by, ADW Capital Management. Each reporting person states that neither the filing of this statement nor anything herein shall be deemed an admission that such person is, for purposes of Section 16 of the Securities Exchange Act of 1934, as amended (the "Act"), or otherwise, the beneficial owner of any securities covered by this statement. Each reporting person disclaims beneficial ownership of the securities covered by this statement, except to the extent of the pecuniary interest of such person in such securities. Each reporting person, among others, may be deemed to be a member of a group with respect to Compass Diversified Holdings (the "Issuer"), or securities of the Issuer for purposes of Section 13(d) or 13(g) of the Act. Each reporting person declares that neither the filing of this statement nor anything herein shall be construed as an admission that such person is, for the purposes of Section 13(d) or 13(g) of the Act or any other purpose, a member of a group with respect to the Issuer or securities of the Issuer. Freely exercisable.
Key Figures
Indirect common share holdings: 3,750,000 Common Shares
Call options sold (obligation to sell): 10,000 options at $0.74
Call options bought (right to buy): 10,000 options at $3.66
+4 more
7 metrics
Indirect common share holdings
3,750,000 Common Shares
Total shares following transaction, indirect ownership
Call options sold (obligation to sell)
10,000 options at $0.74
Open-market sale on May 29, 2026
Call options bought (right to buy)
10,000 options at $3.66
Open-market purchase on May 29, 2026
Strike price sold calls
$20.00 per share
Call Option (Obligation to Sell), expires January 15, 2027
Strike price bought calls
$10.00 per share
Call Option (Right to Buy), expires January 15, 2027
Underlying shares per options leg
1,000,000 Common Shares
Underlying security for each call option leg
Options contracts after trades
40,000 contracts per leg
Total call options following transaction for each call type
Key Terms
Call Option (Obligation to Sell), Call Option (Right to Buy), indirect ownership, beneficial ownership, +2 more
6 terms
Call Option (Obligation to Sell) financial
"security_title: "Call Option (Obligation to Sell)" with strike price $20.0000"
Call Option (Right to Buy) financial
"security_title: "Call Option (Right to Buy)" with strike price $10.0000"
indirect ownership financial
"ownership_type: "indirect" and ownership_code: "I" for all positions"
beneficial ownership regulatory
"Each reporting person disclaims beneficial ownership of the securities covered by this statement"
Beneficial ownership means the person or entity that actually enjoys the benefits of owning shares or other assets — such as receiving dividends, voting rights, or price gains — even if the legal title is held in another name. For investors it matters because knowing who truly controls and profits from a company reveals who can influence decisions, exposes potential conflicts of interest or hidden concentration of power, and affects transparency and risk in the stock.
pecuniary interest financial
"disclaims beneficial ownership of the securities covered by this statement, except to the extent of the pecuniary interest"
Section 16 of the Securities Exchange Act of 1934 regulatory
"for purposes of Section 16 of the Securities Exchange Act of 1934, as amended"
A provision of federal securities law that requires company insiders—directors, officers and large shareholders—to publicly report their stock holdings and trades and to surrender any “short-swing” profits from purchases and sales within a six-month window. It acts like a rule that forces leaders to announce their trades and prevents quick buy-sell windfalls, giving investors transparency into insider activity and reducing opportunities for unfair gain.
FAQ
What are the terms of the CODI call options sold by the ADW Capital group?
They sold 10,000 "Call Option (Obligation to Sell)" contracts at $0.74 per option, with a $20.00 strike price, expiring January 15, 2027, referencing 1,000,000 Common Shares. These options are reported as freely exercisable under the disclosure footnotes.
What are the terms of the CODI call options purchased by the ADW Capital group?
They bought 10,000 "Call Option (Right to Buy)" contracts at $3.66 per option, with a $10.00 strike price, expiring January 15, 2027. These derivative positions also reference 1,000,000 Compass Diversified Holdings Common Shares and are described as freely exercisable.
Who is the record owner of the CODI securities reported in the ADW Capital Form 4?
ADW Capital Partners, L.P. is the record and direct beneficial owner of the reported securities. ADW Capital Management, LLC acts as general partner and investment manager, and Adam D. Wyden is the sole manager of ADW Capital Management, with each person disclaiming beneficial ownership beyond pecuniary interest.
Do the ADW Capital reporting persons claim full beneficial ownership of their CODI positions?
No. Each reporting person explicitly disclaims beneficial ownership of the securities except to the extent of their pecuniary interest. They also state that the filing should not be considered an admission of membership in any group under Sections 13(d) or 13(g) of the Exchange Act.