Zscaler (ZS) Stock Concentration Calculator

Calculator · free · no signup · ZS

Quantify Zscaler 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.

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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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About Zscaler

Zscaler (ZS) is a public Cybersecurity company, incorporated in Delaware and headquartered in San Jose, CA. IPO'd Mar 16, 2018.

Last close: $127.23 per share (as of 2026-06-16).

Equity grants at Zscaler typically include non-qualified stock options (NSOs) and restricted stock units (RSUs).

Zscaler, Inc. is an American cloud security company based in San Jose, California. The company offers cloud-based services to protect enterprise networks and data.

Source: Wikipedia (CC BY-SA 4.0)

Jay Chaudhry and K. Kailash founded Zscaler in 2007 to rebuild corporate security as a cloud service rather than a stack of on-premise appliances. The San Jose company routes employee web and application traffic through its Zero Trust Exchange, brokering access per-session instead of trusting the network perimeter. Core products split into ZIA for internet filtering, ZPA for private app access, and ZDX for digital experience monitoring. Shares debuted on NASDAQ in March 2018 at $16, and annual recurring revenue has since crossed $2 billion as enterprises retire legacy VPNs.

Sources: zscaler.com · en.wikipedia.org · ir.zscaler.com

Equity comp at Zscaler

  • 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 2026-05-07.

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

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

Example: 5,000 ZS shares at $127.23 is a $636,150 position. A 30% drawdown costs $190,845; a 50% drawdown costs $318,075; a 70% drawdown costs $445,305. The calculator quantifies the trade-off between selling down (immediate capital-gains tax) and hedging (option premium drag) using ZS's option-implied volatility and your cost basis.

All Zscaler tools → · Use the generic Stock Concentration Calculator for any company.

Zscaler equity questions

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