ResMed (RMD) Stock Concentration Calculator

Calculator · free · no signup · RMD

Quantify ResMed 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 ResMed

ResMed (RMD) is a public Other company, incorporated in Delaware and headquartered in San Diego, CA.

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

ResMed Inc. is a medical equipment company based in San Diego, California, and founded in Australia. It primarily provides cloud-connectable medical devices for the treatment of sleep apnea, chronic obstructive pulmonary disease (COPD), and other respiratory conditions. Resmed produced hundreds of thousands of ventilators and bilevel devices to help treat the respiratory symptoms of patients with COVID-19. Resmed also provides software to out-of-hospital care agencies to streamline transitions of care into and between these care settings for seniors and their care providers.

Source: Wikipedia (CC BY-SA 4.0)

Peter Farrell founded the company in Sydney in 1989 to commercialize continuous positive airway pressure, the sleep apnea treatment developed by Colin Sullivan at the University of Sydney. Masks and flow generators are sold with cloud connectivity that reports adherence data to physicians and payers, which is what insurers require for reimbursement. A competitor's 2021 recall shifted substantial share to ResMed. Software for home medical equipment providers and out-of-hospital care extends the business. Headquarters are in San Diego with a dual listing in Australia.

Sources: resmed.com · en.wikipedia.org

Equity comp at ResMed

  • 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 ResMed.

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

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

ResMed equity questions

How much RMD 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 RMD position and weighs selling down (which triggers capital-gains tax now) against hedging (which costs option premium).
Does ResMed grant ISOs, NSOs, or RSUs?
Equity compensation at ResMed typically takes the form of restricted stock units (RSUs). Restricted stock units are taxed as ordinary income when they vest.
Do ResMed RSUs use double-trigger vesting?
No. ResMed 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.
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