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

Does Zimmer Biomet grant ISOs, NSOs, or RSUs?

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

Zimmer Biomet (ZBH) Stock Concentration Calculator

Calculator · free · no signup · ZBH

Quantify Zimmer Biomet 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 Zimmer Biomet

Zimmer Biomet (ZBH) is a public Medical Device company, incorporated in Delaware and headquartered in Warsaw, IN.

Last close: $99.15 per share (as of 2026-08-19).

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

Zimmer Biomet Holdings, Inc. is a publicly traded American medical device company. It was founded in 1927 to produce aluminum splints. The firm is headquartered in Warsaw, Indiana, where it is part of the medical devices business cluster.

Source: Wikipedia (CC BY-SA 4.0)

The 2015 merger of Zimmer and Biomet created one of the largest makers of orthopedic implants, concentrated in knee and hip replacement. Demand is demographic and deferrable: procedures follow an aging population but patients can postpone them, which made volumes unusually volatile during and after the pandemic. Surgeons drive product selection, so relationships and training programs function as distribution. Robotic surgical systems are placed to lock in the implants used with them. Headquarters are in Warsaw, Indiana.

Sources: sec.gov · en.wikipedia.org

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

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

Example: 5,000 ZBH shares at $99.15 is a $495,750 position. A 30% drawdown costs $148,725; a 50% drawdown costs $247,875; a 70% drawdown costs $347,025. The calculator quantifies the trade-off between selling down (immediate capital-gains tax) and hedging (option premium drag) using ZBH's option-implied volatility and your cost basis.

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

Zimmer Biomet equity questions

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

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One piece of the puzzle.

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

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