How much DXCM 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 DXCM position and weighs selling down (which triggers capital-gains tax now) against hedging (which costs option premium).

Does Dexcom grant ISOs, NSOs, or RSUs?

Equity compensation at Dexcom typically takes the form of restricted stock units (RSUs). Restricted stock units are taxed as ordinary income when they vest.

Dexcom (DXCM) Stock Concentration Calculator

Calculator · free · no signup · DXCM

Quantify Dexcom 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

Position value

Portfolio value

Cost basis

Acquisition date

Sector

Annual growthDefault. Adjust to test.

35%

Volatility dragDefault. Adjust to test.

20%

Market return / yr

10%

Tax

State

Annual income

Filing status

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

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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About Dexcom

Dexcom (DXCM) is a public Medical Device company, incorporated in Delaware and headquartered in San Diego, CA.

Last close: $89.6 per share (as of 2026-08-19).

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

Dexcom, Inc. is an American multinational healthcare company that develops, manufactures, produces and distributes a line of continuous glucose monitoring (CGM) systems for diabetes management. It operates internationally with global headquarters and R&D center in San Diego, California, U.S., and manufacturing facilities in Mesa, Arizona, U.S.; Batu Kawan, Malaysia; and Athenry, County Galway, Ireland.

Source: Wikipedia (CC BY-SA 4.0)

The company builds continuous glucose monitors, sensors worn on the body that report blood sugar every few minutes to a phone rather than requiring a fingerstick. Each sensor is replaced on a fixed cycle, so once a patient starts, the revenue is a subscription in everything but name. Growth has come from moving beyond type 1 diabetes into the far larger type 2 population and from insurance coverage expanding to match. Integration with insulin pumps makes the sensor part of an automated system rather than a standalone reader. Headquarters are in San Diego.

Sources: sec.gov · en.wikipedia.org

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

If a meaningful share of your net worth sits in DXCM, 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 DXCM's option-implied volatility.

Example: 5,000 DXCM shares at $89.6 is a $448,000 position. A 30% drawdown costs $134,400; a 50% drawdown costs $224,000; a 70% drawdown costs $313,600. The calculator quantifies the trade-off between selling down (immediate capital-gains tax) and hedging (option premium drag) using DXCM's option-implied volatility and your cost basis.

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

Dexcom equity questions

How much DXCM 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 DXCM position and weighs selling down (which triggers capital-gains tax now) against hedging (which costs option premium).
Does Dexcom grant ISOs, NSOs, or RSUs?: Equity compensation at Dexcom typically takes the form of restricted stock units (RSUs). Restricted stock units are taxed as ordinary income when they vest.

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OptionsAhoy plans your Dexcom equity alongside hedging, vesting, and de-concentration, across bullish, neutral, and bearish market scenarios. Free during beta.

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