Company universe
We begin with companies selected for business quality, durability, option liquidity and willingness to own the shares if assigned.
FARLAND FIVE METHODOLOGY
A curated universe. A proprietary ranking model. Five opportunities.
Our ESPP universe means Farland Capital’s proprietary Easy, Safe, Profitable and Pleasant universe of companies. The phrase is screening shorthand—not a promise of safety or profit.
Opportunity detection
RSI, 21-day EMA, 50-day SMA, 200-day SMA and 52-week context help identify pullbacks and dislocations.
Volatility edge
IV Rank, current IV and five-day IV expansion help determine whether option premium is sufficiently rich.
Contract & risk
We generally evaluate 30–45 DTE puts near 20–25 delta, then consider liquidity, earnings and downside fragility.
VVIX / VIX regime
We compare the volatility of VIX options (VVIX) with the VIX itself. A higher ratio can indicate that volatility markets are becoming more unstable relative to the headline VIX level, so Farland uses the ratio as a portfolio-risk regime—not as a standalone trading signal.
Below 5: normal/risk-on posture. 5–6: more selective. Above 6: defensive posture, 50% profit target and no new risk under the current framework.