Cadence (CDNS) Stock Concentration Calculator
Calculator · free · no signup · CDNSQuantify Cadence 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
Tax
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).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.
Build your own plan
Toggle below — chart updates live. Sell buttons show the slice.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.
Request beta access →Related calculators: Protect Your Stock Calculator · RSU Lot Order Calculator · Equity Funding Plan Calculator
About Cadence
Cadence (CDNS) is a public Dev Tools company, incorporated in Delaware and headquartered in San Jose, CA.
Equity grants at Cadence typically include restricted stock units (RSUs).
Cadence Design Systems, Inc. is an American multinational technology and computational software company headquartered in San Jose, California. Initially specialized in electronic design automation (EDA) software for the semiconductor industry, currently the company makes software and hardware for designing products such as integrated circuits, systems on chips (SoCs), printed circuit boards, as well as develops large-scale molecular modelling applications and toolkits for pharmaceutical drug developers. The company also licenses intellectual property for the electronics, aerospace, defense and automotive industries.
Source: Wikipedia (CC BY-SA 4.0)
Formed in 1988 by merging SDA Systems and ECAD, the San Jose company sits with Synopsys in the design automation duopoly. Its tools cover custom analog layout through digital implementation and verification, with Virtuoso the long-running standard for analog and Palladium emulation hardware handling the largest verification jobs. Adjacent expansion took it into system analysis, computational fluid dynamics, and molecular design for pharmaceuticals. Contracts are largely multi-year and ratable, so reported revenue lags bookings, and customer concentration follows the same short list of chipmakers everyone else in the ecosystem serves.
Sources: cadence.com · en.wikipedia.org
Equity comp at Cadence
- RSUs use single-trigger vesting: shares become yours as each portion vests on schedule, and the value is taxed as ordinary income at that point. No IPO or acquisition is required.
Researched 2026-08-17.
OptionsAhoy is an independent tool and is not affiliated with, endorsed by, or sponsored by Cadence.
If a meaningful share of your net worth sits in CDNS, 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 CDNS's option-implied volatility.
All Cadence tools → · Use the generic Stock Concentration Calculator for any company. Diversifying multiple RSU lots? See the lot-by-lot sell order →
Cadence equity questions
- How much CDNS 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 CDNS position and weighs selling down (which triggers capital-gains tax now) against hedging (which costs option premium).
- Does Cadence grant ISOs, NSOs, or RSUs?
- Equity compensation at Cadence typically takes the form of restricted stock units (RSUs). Restricted stock units are taxed as ordinary income when they vest.
- Do Cadence RSUs use double-trigger vesting?
- No. Cadence restricted stock units (RSUs) use single-trigger vesting: each tranche becomes yours as it vests on schedule, taxed as ordinary income at that point, with no liquidity event required.
One piece of the puzzle.
OptionsAhoy plans your Cadence equity alongside hedging, vesting, and de-concentration, across bullish, neutral, and bearish market scenarios. Free during beta.