Align Technology (ALGN) Stock Concentration Calculator

Calculator · free · no signup · ALGN

Quantify Align Technology concentration risk. Drawdown impact at 30 / 50 / 70%, with the tax-aware trade-off between selling down and hedging.

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.

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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

About Align Technology

Align Technology (ALGN) is a public Medical Device company, incorporated in Delaware and headquartered in Tempe, AZ.

Last close: $167.91 per share (as of 2026-08-19).

Equity grants at Align Technology typically include restricted stock units (RSUs).

Align Technology, Inc. is an American manufacturer of 3D digital scanners and Invisalign clear aligners used in orthodontics and restorative workflow. It was founded in 1997 and is headquartered in Tempe, Arizona. The company manufactures the aligners in Juarez, Mexico, and its scanners in Israel and China. The company is best known for its Invisalign system, which is a clear aligner treatment used to straighten teeth.

Source: Wikipedia (CC BY-SA 4.0)

Two Stanford students, Zia Chishti and Kelsey Wirth, founded the company in 1997 on the idea that a series of clear plastic trays could move teeth without brackets and wire, and Invisalign became the product that defined the category. The business depends on persuading general dentists as well as orthodontists to prescribe it, which is why so much spend goes to practitioner training and consumer marketing. Intraoral scanners were added to control the digital step that feeds tray manufacturing. Case volume tracks discretionary consumer spending more closely than most medical devices. Headquarters are in Tempe, Arizona.

Sources: sec.gov · en.wikipedia.org

OptionsAhoy is an independent tool and is not affiliated with, endorsed by, or sponsored by Align Technology.

If a meaningful share of your net worth sits in ALGN, concentration risk is the question. This calculator quantifies drawdown impact at 30 / 50 / 70%, and the trade-off between selling down (tax cost now) versus hedging (option premium drag), auto-filled with ALGN's option-implied volatility.

Example: 5,000 ALGN shares at $167.91 is a $839,550 position. A 30% drawdown costs $251,865; a 50% drawdown costs $419,775; a 70% drawdown costs $587,685. The calculator quantifies the trade-off between selling down (immediate capital-gains tax) and hedging (option premium drag) using ALGN's option-implied volatility and your cost basis.

All Align Technology tools → · Use the generic Stock Concentration Calculator for any company. Diversifying multiple RSU lots? See the lot-by-lot sell order →

Align Technology equity questions

How much ALGN stock is too much?
There is no single threshold, but the larger the share of your net worth in one stock, the more a single bad year can set back your plans. The calculator above quantifies the drawdown impact at 30, 50, and 70 percent for your ALGN position and weighs selling down (which triggers capital-gains tax now) against hedging (which costs option premium).
Does Align Technology grant ISOs, NSOs, or RSUs?
Equity compensation at Align Technology typically takes the form of restricted stock units (RSUs). Restricted stock units are taxed as ordinary income when they vest.
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