How concentrated is your portfolio?

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Are you stuck with a concentrated position? This calculator might help.

Beta · invite-only · AlphaLatitude Inc. · Free Tools

Your inputs

Adjust — results update instantly.

Position & portfolio

Default. Adjust to test.
35%
Default. Adjust to test.
20%
10%

Tax

67%
Highly concentratedLong-term
If 30% drop
−$150,000
If 50% drop
−$250,000
If 70% drop
−$350,000

Most fee-only advisors target ≤10% in any single name. You're at 67%.

Estimates only. Not financial advice.

Most sensitive to: Expected market return (±10% on this input swings best-plan wealth by ±$190,508).

Cost of fully de-concentrating

All three plans sell to 0% (no hedge).

Tax
Wealth (3y)$956,485
+$33,417 vs.

Tax
Wealth (3y)$994,174
+$71,106 vs.

Tax
Wealth (3y)$1.04M
+$112,490 vs.

Sensitivity. If your expected position return drops below 19.6%/yr, lump-sum (sell everything today) beats every spread plan above.

Have multiple RSU vest lots? The RSU Lot Order Calculator picks which lots to sell first, and on which dates, to divest at the lowest computed tax.

Design a hedge →

Build your own plan

Toggle below — chart updates live. Sell buttons show the slice.
Sell over 1 yearSell over 2 yearsSell over 3 yearsCustom
$712,500$815,995$919,489$1,022,984$1,126,478Yr 0Yr 1Yr 2Yr 3
Year 1
Year 2
Year 3
Tax$200,753
Hedge cost$37,676
Wealth at Y3$1,046,371
Vs. best fixed plan+$10,813

Tech / Software single names hit a 50%+ peak-to-trough drawdown in roughly 1 of every 5 rolling 3-year windows over 2014–2024. Even mega-caps aren’t exempt.

Tax brackets: 2026 · Estimates only — not financial advice.

Estate note. Heirs receive a stepped-up basis at death (§1014), eliminating built-in gain on inherited shares. Older holders who plan to bequeath rather than sell may rationally never de-concentrate.

You sized one position's risk. The beta integrates hedging, sell-down, and tax timing into one optimized plan.

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Related calculators: Protect Your Stock Calculator · RSU Lot Order Calculator · Equity Funding Plan Calculator

What this calculates

  • Single-stock concentration: what a 30%, 50%, or 70% drop would cost your position, in dollars.
  • Selling shares (capital-gains tax now) vs. hedging with options (premium paid out each year).
  • Sell over 1, 2, or 3 years, side by side, with the crossover where lump-sum starts to beat spreading.
  • Build your own de-concentration plan: pick the sell and hedge actions year by year, see end-of-horizon wealth vs. selling everything today.

Doesn't cover QSBS step-up, exchange funds, 10b5-1 plans, or charitable-remainder trusts. We'll cover each in a separate article.

Read the deep dive: How much of your net worth should be in one stock? →

Methodology

Optimization. Quantifies single-stock drawdown exposure at 30/50/70% and searches the multi-year sell-down vs hold vs hedge space on an after-tax basis, returning the schedule that maximizes risk-adjusted terminal value. The search is deterministic: the same inputs on the same date return the same answer, so the recommendation is verifiable.

Tax-code coverage. Relevant federal code (ordinary brackets, long-term capital gains, AMT with credit recovery, FICA, Net Investment Income Tax) plus all 50 states and DC for state ordinary brackets and LTCG treatment. State AMT modeled for CA, CO, CT, MN. Brackets reflect IRS Rev. Proc. 2025-32 and the One Big Beautiful Bill Act (OBBBA) provisions for tax year 2026. Validated against 870+ unit tests covering bracket math, AMT credit recovery, state conformity, and the optimizer's search path.

Why use an optimizer rather than asking an LLM to do the math: a benchmark of five frontier large language models on the same multi-year ISO problem found that all 15 trials overstated the after-tax result of their own proposed schedule by 2x to 20x (HackerNoon write-up).

AI assistant integration

Use this from ChatGPT, Claude, Cursor, or VS Code

Ask your agent:

“30% of my net worth is in NVDA. What does a sell-down schedule look like, after taxes?”

With the OptionsAhoy MCP installed, your agent calls concentration_analyze and returns the same after-tax answer this calculator computes.

Add to ChatGPTAdd to CursorAdd to VS CodeAll install options →
Find your company103 companies

You modeled one expected return. The beta runs all three.

OptionsAhoy projects bullish, neutral, and bearish scenarios in parallel and finds the de-concentration + hedge schedule that maximizes after-tax value across all three. Free during beta.

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