The Hidden Cost of Holding a Losing Position
Opportunity-Cost Comparison Tool
Reviewed 2026-07-31

Formula:
Opportunity cost = capital trapped x alternative annual return x holding period / 12.

Checklist:
- Separate sunk loss from current decision quality.
- Estimate the recovery target and likely holding period.
- Compare with a hypothetical alternative return entered by you.
- Account for additional downside and concentration risk.

Educational use only. Options involve risk and results depend on your assumptions.