Short answer: a strong stock run is a reason to review your RSU concentration, not a reason to automatically sell or automatically hold.
This is where many tech employees get stuck. The stock has done well, so selling feels like a mistake. The company feels familiar. The tax questions are annoying. The next vest is coming soon anyway.
So nothing happens.
That is still a decision.
There is also a tax angle. After a strong stock run, the question is not only whether to sell. It is which lot to sell, how much gain each lot carries, and whether selling one vest creates a better tax result than selling another.
Past performance can create concentration
Employees usually do not set out to build a single-stock portfolio.
It happens gradually:
- ✓A grant vests.
- ✓The stock rises.
- ✓The employee holds.
- ✓Refresh grants arrive.
- ✓The stock rises again.
- ✓The position becomes a large part of net worth.
By the time the employee notices, the decision feels harder. Selling now can feel like leaving upside behind. Holding can feel easier because it requires no action.
But ease is not the same as suitability.
Separate belief from size
You can believe in your employer and still sell part of a vested position.
Selling does not mean the company is weak. It may mean your personal financial life should not depend so heavily on one company's valuation.
This distinction matters after a strong stock run because the position may be larger than intended. A stock that started as 10 percent of net worth can become 30 percent or more without any new decision from you.
The three questions to ask
Before selling or holding, answer:
- What percentage of my net worth is in employer stock?
- Would I buy this much of the stock today with cash?
- What happens to my plan if the stock falls 30 to 50 percent?
If the answers are uncomfortable, the issue is concentration.
Build the rule before the next vest
The rule can be simple:
- ✓Sell a fixed percentage of every vest.
- ✓Sell above a chosen concentration threshold.
- ✓Sell enough to fund planned expenses.
- ✓Sell the tax lots that fit the plan after reviewing gain, loss, holding period, and records.
- ✓Hold only the portion you would willingly buy today.
The point is not to guess the top. The point is to avoid letting inertia set your portfolio.
Check the tax lots before selling
RSUs usually vest in batches. Each batch can have a different vest date, cost basis, exchange rate record, and unrealized gain or loss. Selling after a strong run without checking lots can create more tax drag than necessary.
Rovia's lot-level review is meant to catch this before the trade. It helps compare vested lots, estimate the tax impact, and identify where a sale may reduce concentration with less avoidable tax friction. The exact answer still needs tax review, but the direction is clear: do not sell blindly from a broker screen if different lots lead to different outcomes.
Do not copy research blindly
Research on concentrated stock positions can be useful because it shows that individual stocks often behave differently from broad markets. But your decision still depends on your tax position, job risk, residency, goals, and concentration.
Use research to ask better questions. Do not use it as a one-line answer.