| TICKER | REC | SECTOR | CT | ML/CT | MAX LOSS | ML % | NET/YR | INC/MO | ROI ML | CDD | STRESSED | GRADE | RATIONALE |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SPACE / AEROSPACE (19.1%) | |||||||||||||
| RKLB | DIAMOND | Space/Aero | 20 | $4,783 | $95,660 | 19.1% | $233,160 | $19,440 | 243.7% | 40% | 30% | ARM | Portfolio anchor. Best ROI_ML in entire universe (244%). Gov launch contracts provide revenue stability. Neutron rocket + satellite systems = secular growth. Beta 2.04 keeps IV elevated. 20ct at $4.8K/ct is operationally manageable. |
| SILVER / PRECIOUS METALS (15.0%) | |||||||||||||
| SLV | DIAMOND | Silver | 15 | $4,999 | $74,985 | 15.0% | $103,395 | $8,610 | 137.9% | 40% | 40% | ARM | Precious metals without touching GLD. ARMORED 40%/40%, the strongest stressed grade possible. 138% ROI_ML. Uncorrelated crisis asset. Silver spikes in inflation and monetary uncertainty. Complements, not duplicates, gold in the original book. |
| SEMICONDUCTOR (15.1%) | |||||||||||||
| AMD | DIAMOND | Semiconductor | 5 | $15,124 | $75,620 | 15.1% | $64,790 | $5,400 | 85.7% | 40% | 40% | ARM | Chip exposure without touching NVDA. ARMORED 40%/40%, identical stressed resilience to NVDA but different company risk (AMD = CPU/GPU challenger, NVDA = GPU monopolist). HIGH IV surprise, 86% ROI_ML. |
| FINTECH (14.8%) | |||||||||||||
| SOFI | DIAMOND | Fintech/Bank | 30 | $1,468 | $44,040 | 8.8% | $37,770 | $3,150 | 85.8% | 40% | 40% | ARM | Neobank + stablecoin. Entirely new sector for the portfolio. $1,468/ct = finest granularity after MARA. 30ct at $44K ML is well diversified internally. ARMORED 40%/40%. Profitable, $1B quarterly revenue, CEO buying stock. |
| HOOD | DIAMOND | Fintech/Broker | 5 | $5,963 | $29,815 | 6.0% | $28,500 | $2,375 | 95.6% | 40% | 35% | ARM | Retail brokerage. Different fintech sub-sector from SOFI (banking vs trading). 96% ROI_ML. ARMORED 40%/35%. |
| AI / DEFENSE (12.3%) | |||||||||||||
| SMCI | DIAMOND | AI/Servers | 15 | $2,556 | $38,340 | 7.7% | $58,050 | $4,845 | 151.4% | 40% | 25% | ARM | AI server builder. 151% ROI_ML, 3rd best efficiency in pool. Near 52W low = cheap LEAPS entry. Accounting controversy keeps IV elevated (fortress feature). ARMORED 40%/25% stressed. |
| PLTR | DIAMOND | AI/Defense | 2 | $11,536 | $23,072 | 4.6% | $14,582 | $1,216 | 63.2% | 40% | 35% | ARM | AI analytics + government contracts. Defense sector hedge. ARMORED 40%/35%. Bridges AI and defense exposure. |
| CRYPTO (6.5%) | |||||||||||||
| MARA | DIAMOND | Crypto/Mining | 40 | $808 | $32,320 | 6.5% | $29,720 | $2,480 | 92.0% | 40% | 30% | ARM | Cheapest per-contract in the universe ($808/ct). BTC mining + AI/HPC pivot. 92% ROI_ML. Kept modest at 6.5% because original portfolio already has IREN, COIN, MSTR crypto exposure. 40ct at $32K ML = surgical. |
| DEFENSIVE / STAPLES (7.6%) | |||||||||||||
| XLP | DIAMOND | Consumer Staples | 5 | $4,519 | $22,595 | 4.5% | $5,860 | $490 | 25.9% | 25% | 25% | ARM | Recession-resistant consumer staples. LOW IV but still ARMORED 25%/25%. The defensive anchor, people buy Procter & Gamble and Coca-Cola in recessions. 26% ROI_ML is the price of stability. |
| ITA | DIAMOND | Defense ETF | 1 | $15,521 | $15,521 | 3.1% | $3,916 | $326 | 25.2% | 35% | 25% | ARM | iShares U.S. Aerospace & Defense ETF. Government spending is uncorrelated to economic cycles. ARMORED 35%/25%. 1ct minimum exposure for sector diversification. |
| ALLOCATED | 138 | $451,968 | 90.4% | $579,743 | $48,332 | 128.3% | |||||||
| RESERVE | $48,032 | 9.6% | Dry powder for rebalancing, DKNG if CDD improves, COPX/ETHA from original book if diversification constraint relaxed | ||||||||||
| TICKER | IV | ROI ML | CDD_S | GRADE | EXCLUSION REASON |
|---|---|---|---|---|---|
| DKNG | HIGH | 62.1% | 15% | RES | Best diversification candidate (sports betting = zero correlation to anything), but RESILIENT 15% violates P1 (income through downturns). At 15% CDD, DKNG's fortress bleeds income at the first real correction. If the optimizer can find a higher-CDD structure on a future chain, this is the first add from reserve. |
| XLV | LOW | 87.4% | 5% | FRG | Healthcare ETF. Impressive ROI_ML (87%) but FRAGILE 5%/5%. Fortress dies at the first 5% drawdown. LOW IV cannot fund hedge rolls. The ROI is a mirage, only works if the stock never drops. |
| XLU | -- | -- | -- | DEAD | Utilities ETF. Optimizer found NO VALID STRUCTURE. Insufficient IV and chain depth. Not viable for fortress construction at any sizing. |
The prior allocation mixed high-efficiency new tickers with familiar names from the original portfolio. This one focuses the entire $500K ML on the best new names only. The result: 128% ROI_ML vs 83%, $48K/mo vs $30K/mo, $46K/mo in stress vs $28K/mo. Every metric improved because there's no dilution from lower-efficiency original names (GLD at 41% ROI, TLT at 37%, NFLX at 67%).
20 contracts, $96K ML, 19% of the portfolio. 244% ROI_ML is not a typo. Rocket Lab at $68/share with HIGH IV and deep Jan '28 LEAPS generates extraordinary CC premium relative to its structure cost. The risk is space sector binary outcomes (launch failures, Neutron delays), but the fortress survives a 30% drawdown regardless. Government launch contracts provide a revenue floor that most HIGH IV names lack.
MARA is the only crypto name because the original portfolio already holds IREN, COIN, MSTR, ETHA. Adding more crypto here would defeat the diversification purpose. MARA earns its slot at $808/ct (cheapest per-contract in the universe) and 92% ROI_ML. 40 contracts at $32K total ML is a rounding error on the portfolio.
Both score 25-26% ROI_ML, the lowest in the portfolio. They're included for structural diversification, not income efficiency. Consumer staples (XLP) and defense spending (ITA) are sectors that hold up in recessions. When RKLB, SMCI, and AMD are under growth-rotation pressure, XLP and ITA provide a ballast. Combined $38K ML, 7.6% of the portfolio, a small price for sector balance.
Growth/tech correlation. RKLB, AMD, SMCI, PLTR, HOOD, and SOFI all have growth-stock beta. In a 2022-style rotation, they move together. However, all 6 are ARMORED 25%+ stressed. SLV and XLP are the counter-cyclical hedges: silver rallies in monetary uncertainty, staples hold in recession. ITA (defense) is budget-cycle driven, not market-cycle driven. The portfolio is tilted growth but not brittle.
| # | TICKER | IV | ML/CT | ROI ML | CDD | CDD_S | GRADE | IN PORT? | SECTOR |
|---|