62% in One Stock?
Remember META -77%
You know you should diversify but the tax bill scares you. Get free crash insurance with costless collars - no selling, no taxes, and sleep at night while your RSUs vest.
Based on 54,298 posts analyzed from r/fatFIRE, r/Bogleheads, and financial communities
Your Net Worth Shouldn't Depend on One Stock
Real frustrations from employees with concentrated positions
I was 95% company stock at $27M. Started diversifying... As of yesterday I'm 10% company stock at $31M.
Just take the hit and pay the taxes. Taxes suck, but they're not the end of the world. I rolled everything into VTI and a little cash over 3 years.
Taxed on $900K worth of RSUs which are currently worth less than half of that.
Valuations were way too frothy. Paid $450K+ in taxes on vesting, stock immediately crashed 50%+. The tax liability on value that evaporated.
My tech company's stock is down about 20% today. My coworkers who hold company stock are having a bad day.
It's a few weeks before RSU and ESPP come in. But it really supports my commitment to selling off company stock early and often. It's already affecting my income, so why would I want my NW affected too?
Between RSU and ESPP I've acquired ~1,000 shares... trading of any derivatives is forbidden.
I just read through my company's insider trading policy and trading of any derivatives is forbidden. Complete ban on covered calls, puts, collars means no downside protection.
The Double-Whammy Risk:
If your dream went up in smoke, it was self inflicted.
If your wealth is so heavily tied to RSU's, you should have been liquidating along the way to pay taxes and diversify. If done right, and you're an exec or early employee with 5+ years of vested RSU's, the decline will be disappointing but not life changing.
You need to protect downside while maintaining upside - without selling and triggering taxes.
How Much Risk Are You Carrying?
Most employees with RSUs have 50-80% of their net worth in a single stock
Tech industry losses in 2022
META: -77%, NVDA: -66%, GOOGL: -44%
Typical blackout period per year
When you can't trade your own stock
Short-term capital gains tax
If you just sell to diversify
Cautionary Tales: Why "Hold Forever" Doesn't Always Work
For every Tesla employee who struck gold, there's a Dropbox or Snowflake employee whose stock underperformed the market.
The Math Problem
If 60% of your $500K net worth is in company stock, a 50% drop means you lose $150,000. A protective put might cost $5K-10K per year - but it caps your downside while you wait for long-term capital gains treatment.
The 5 Mistakes That Cost RSU Holders Millions
Based on analysis of 54,298 posts from r/fatFIRE, r/Bogleheads, r/financialindependence, and r/personalfinance
"My Company is Special"
Overconfidence bias. 100% of 401k in company stock has wiped out retirements at Nortel, Enron, and Lehman.
Tax Mechanics Misunderstanding
RSUs are taxed at vesting, not when you sell. If you sell same-day, there's minimal additional tax. Years of holding due to this misconception.
Tax Paralysis
Users make multi-million dollar risk decisions to save $50K-$200K in taxes. Concentration risk typically costs 2-5x more than tax savings.
40%+ Concentration Emergency
Tied to a tech stock that has boomed recently, and doubly more so because it's tied to your employment. Triple threat.
Not Hedging During Open Windows
$12.5M+ subject to blackout periods, can't rebalance or hedge. Even ultra-high net worth individuals trapped by restrictions.
"About half is liquid but subject to blackout periods (public company stock)." - r/fatFIRE (25↑)
The Boglehead Consensus
90% of Boglehead advice: vest and sell immediately. Treat RSUs as cash bonus - would you invest 60% of cash in one stock?
Finding the Optimal Hedge, Powered by 5-Pillar Scoring
Not all hedges are created equal. Our Options Opportunity Score analyzes 5 key pillars to find you the best protection at the lowest cost.
Value
Is it cheap?
IV rank and premium pricing tell us if protection is expensive or cheap right now.
StockShield Application:
Find the cheapest hedges when implied volatility is low - save thousands on protection costs.
Sentiment
Clear signal?
Put/call ratio and flow direction reveal sentiment clarity and hedge pricing skew.
StockShield Application:
Build costless collars when call premiums are high - let bullish sentiment subsidize your put protection.
Activity
How active?
Volume and unusual activity signal institutional positioning and upcoming catalysts.
StockShield Application:
Spot unusual put buying before earnings - protect yourself when smart money is hedging.
Liquidity
Can I trade?
Bid-ask spreads and volume determine if you can enter and exit hedges efficiently.
StockShield Application:
Avoid wide spreads that eat into your returns - trade only liquid strikes with tight markets.
Timing
When to enter?
Catalyst proximity and technical levels help time hedge entry for maximum efficiency.
StockShield Application:
Time hedges around blackout periods and earnings - protect before you're locked out.
Combined Score
Best opportunities
All 5 pillars combined into a single score to identify the best hedging opportunities.
StockShield Application:
Get alerts when your stock hits a high score - optimal conditions for cost-effective protection.
Why the 5-Pillar Score Matters for RSU Protection
A costless collar on META might cost $7,400 in puts and earn $7,600 in calls today - but next week those numbers could be $9,200 and $6,800, turning free protection into a $2,400 cost. The Options Opportunity Score monitors all 5 pillars daily to alert you when conditions are optimal for establishing your hedge.
Explore the 5-Pillar Scoring SystemSee Your RSU Position At A Glance
Upload your holdings and get personalized analysis across all 6 features
AIME analyzes your positions using daily market data and our proprietary 5-Pillar scoring system to provide personalized recommendations and insights.
Your RSU Position
Demo DataBlackout Period Planner
Feature #2Timing alerts before blackout periods • Activity detects unusual signals to hedge before events
TIMING pillar alert: Q4 earnings blackout starts Jan 28. You have 35 days to establish hedges before being locked out for 9 days during peak volatility. The 'Days to Earnings' metric (30% of TIMING score) favors hedging now while you're 35+ days out.
Income Projections
Feature #3Generate monthly income from your META position using covered calls at different strike prices
Sentiment shows high call premiums from bullish positioning • Activity tracks volume spikes • Value identifies rich IV levels
Remember: No Downside Protection
Covered calls generate income but don't protect against crashes. If META drops 30%, you'll still lose 30% minus the small call premium. Consider combining with protective puts for a collar strategy.
SENTIMENT pillar insight: Bullish flow (P/C Ratio 0.68) means call premiums are elevated. Conservative covered calls at $740 strike could generate $1,650/month while maintaining 10% upside. That's $19.8K/year in income from your META position. High call demand = better income for you.
Vesting Calendar & Tax Optimization
Feature #6Timing coordinates hedging around vesting dates • Value identifies low-cost protection windows
Tax-Optimized Strategy Recommendation
Jan 15 vesting: Sell immediately to avoid concentration increase. You've already paid tax at vesting - selling now triggers minimal additional tax.
Existing 400 shares: If held >1 year, you qualify for long-term capital gains (20% vs 44%). Consider hedging instead of selling to defer taxes.
Quarterly strategy: Use covered calls on each new vesting batch to generate 4-8% immediate return while you decide long-term strategy.
Your 2025 vesting adds $181,840 in new exposure. At 62% concentration, each vest increases your single-stock risk. Consider hedging new shares immediately as they vest - the current 5-Pillar Score (VALUE 78/100, TIMING 82/100) makes this an optimal time for cost-effective protection.
Protection Analysis: Strategy Comparison
Feature #5Compare different protection strategies for your $451,230 META position
Value finds cheap protection when IV is low • Sentiment identifies when call premiums subsidize puts • Timing alerts you before blackout periods
Protective Put
Costless Collar
Put Spread Collar
Payoff Diagram Comparison
VALUE pillar at 78/100 means options are cheap - perfect for costless collars. A collar at $600/$750 provides 11% downside protection with 11% upside cap. This is crash insurance with no out-of-pocket cost. When VALUE is high (cheap options), collars become even more favorable.
Position Monitoring & Risk Alerts
Feature #4Activity monitors institutional flow • Liquidity alerts on spread widening • Timing notifies of catalyst proximity
Portfolio Composition
Active Risk Alerts
Your META position represents 62% of net worth. Recommended: <20%. Consider immediate hedging or diversification.
Q4 earnings blackout starts Jan 28. You must establish hedges by Jan 27 (last trade day) or wait 44 days.
50 shares vesting in 34 days (~$33,674 value). Plan your tax withholding and decide: sell, hold, or hedge?
AIME's Comprehensive Analysis
AIME - AI Market Interpreter • All FeaturesAIME has analyzed this for youMETA
Bottom-line
You have $451K in META (62% of net worth), zero protection, and a blackout window in 35 days. The 5-Pillar Score shows META's VALUE pillar at 78/100 (options are cheap) and TIMING pillar at 82/100 (35 days until blackout). The costless collar is your best move - it gives you free crash insurance AND keeps you protected through earnings when you can't trade.
1.Feature #1: Strategy Calculator - Your Optimal Protection
The VALUE pillar (78/100) shows META options are cheap right now - IV Rank at 22% means you're getting protection near 52-week lows. The TIMING pillar (82/100) confirms this is ideal for hedging with 35 days until your blackout.
I analyzed 3 protection strategies for your 400 vested shares:
Recommendation: Costless Collar. You get full downside protection, pay $0, and can still gain 11%. That's a 74% crash cushion for free.
2.Feature #2: Blackout Period Planner - You Have 35 Days to Act
The TIMING pillar (82/100) is flagging this as URGENT - you're in the optimal window for hedging before your blackout.
Your company has 4 blackout periods per year (36 days total):
The TIMING pillar tracks 'Days to Earnings' (30% weight) and 'Event Risk' (20% weight). Right now both are in your favor - META earnings are 35+ days out, giving you high scores. Wait too long and the TIMING score drops to 35-55 as IV crush risk increases.
Action: Set up your collar in the next 2-3 weeks. Don't wait until Jan 27 - options spreads widen near blackouts.
3.Feature #3: Income Projections - Generate $39K/Year While Protected
The SENTIMENT pillar shows call premiums are elevated (P/C Ratio 0.68 = bullish flow). This makes costless collars particularly attractive - you can sell expensive calls to fund cheap puts.
If you want income instead of pure protection:
BUT remember: Covered calls give NO downside protection. If META drops 30%, you lose 30% minus tiny premium. Better idea: Use the costless collar which COMBINES protection + income (the call premium pays for the put). The SENTIMENT pillar's 'OI Skew' metric shows heavy call interest - perfect for selling calls at good prices.
4.Feature #4: Position Monitoring - You're at CRITICAL Risk
Your current risk profile:
If META drops 50% (it dropped 77% in 2022), you lose $225,615. A costless collar would limit that loss to ~$49,600. That's a $176K difference for $0 cost.
5.Feature #5: Protection Analysis - Why Collar Beats the Alternatives
The LIQUIDITY pillar (91/100) confirms META options are highly liquid - ATM spread is only 0.3%, meaning you can execute your collar efficiently without slippage eating into your protection.
Scenario comparison if META drops to $450 (-33%):
The costless collar gives you almost identical protection to the expensive put, but costs you nothing. You're literally getting free insurance. The LIQUIDITY pillar's high score (daily volume 2.3M contracts, total OI 8.4M) means you can trade multi-leg strategies like collars with tight execution.
6.Feature #6: Vesting Calendar - Plan Around Your 270 Shares Coming
You have 270 shares vesting in 2025 worth $181,840:
Total taxes: $80,818. Remember: You're taxed at VESTING, not when you sell. So selling immediately triggers minimal additional tax. Strategy: Sell each batch as it vests to avoid increasing concentration further. Your existing 400 shares are the big problem.
AIME analyzes gamma levels, IV rank, and market catalysts to give you personalized insights
Based on Your Position, Here Are Your Options
Protect it from crashes, generate passive income, or do both at once
Protective Put
Buy puts to set a floor. Pay premium, keep unlimited upside.
Best for: Maximum protection, bullish outlook
Costless Collar
Buy puts + sell calls. Protection paid by income. Zero cost.
Best for: Protection without paying premium
Put Spread Collar
Partial protection, higher upside cap. Balanced trade-off.
Best for: Some risk tolerance, want more upside
Covered Calls
Sell calls for monthly income. No downside protection.
Best for: Income generation, ready to sell if called
Example: 500 GOOGL Shares at $165
Alternative: Monthly Income Strategy
Which Strategy Fits Your Situation?
Worried about a crash?
→ Costless Collar or Protective Put
Want income while waiting to sell?
→ Covered Calls or Put Spread Collar
Want both protection + some income?
→ Costless Collar (call premium = put cost)
Expecting stock to moon?
→ Protective Put (keep unlimited upside)
Check Your Company Policy First
Some companies prohibit derivatives trading on company stock. We'll help you understand your restrictions and find compliant alternatives like sector ETF options or scheduled 10b5-1 plans.
Your Personal RSU
Strategy Calculator
Input your shares, cost basis, and goals. Get personalized recommendations: optimal collar strikes, income projections, and tax impact - all based on daily EOD options pricing.
Enter Your Position
Ticker, shares, cost basis, and vesting schedule
Choose Your Goal
Protection, income, or both? Set your risk tolerance.
Get Personalized Strategy
Optimal strikes, income projections, and protection levels
Strategy Preview: NVDA
Strikes optimized at gamma support ($125) and resistance ($165) levels
Everything You Need to Manage Your RSUs
Protection, income, tax optimization, and compliance - all in one place
Strategy Calculator
Compare protection vs. income trade-offs. Get optimal strikes based on your goals and gamma levels.
Blackout Period Planner
Schedule hedges before blackout windows. Never be exposed during earnings when you can't trade.
Income Projections
See potential monthly income from covered calls. Calculate yield on your position at different strike prices.
Position Monitoring
Track your concentration vs. portfolio. Alerts when you exceed risk thresholds or hedges expire.
Protection Analysis
Compare costless collars, protective puts, and spread collars. See cost vs. coverage trade-offs.
Vesting Calendar
Track vesting schedules, plan strategies around new shares, and optimize for tax efficiency.
Earnings & Catalyst Calendar
Know when to hedge and when to harvest income. Plan around earnings, lockups, and macro events.
From 95% to 10% Concentration - NW Up $4M
"I was 95% company stock at $27M about 3 years ago. Started diversifying and paying lots of taxes, just rolled everything into VTI and a little cash. As of yesterday I'm 10% company stock at $31M. Taxes suck, but they're not the end of the world."
Built for Employees with Equity
Target personas identified from 54,298 posts analyzed
Tax-Anxious Maximizer
CA/NY resident with $1M-$3M position. Knows they should sell but paralyzed by tax bill.
35% of users • High willingness to pay
Concentration-Aware but Inert
$500K-$1M position, knows concentration risk, keeps saying "I'll get to it."
30% of users • Medium willingness to pay
Golden Handcuffed Executive
$5M+ unvested, can't leave job due to equity. Needs hedging + exit planning.
15% of users • Very high willingness to pay
Post-Liquidity Event
IPO/acquisition just happened, $10M+ overnight. Massive concentration, needs urgent diversification.
20% of users • High one-time payment
Companies Most Discussed in RSU Conversations
Your RSUs Deserve to
Work Harder
Get a personalized strategy for your company stock. See how much protection you can get and how much income you can generate.
CONCERN
"Tax hit is too big to sell"
→ Hedge with collars - no selling, no tax event
CONCERN
"Stock is just sitting there"
→ Generate 10-18% annual yield with covered calls
CONCERN
"Company bans derivatives"
→ We help find compliant alternatives (ETF options, 10b5-1)
Based on analysis of 54,298 posts from r/fatFIRE, r/Bogleheads, r/financialindependence, and r/personalfinance. Your RSUs are your reward for building the company - make them work for you.