Is the Options Market Predicting a Spike in Redwood Trust Stock?

Core Viewpoint - Investors in Redwood Trust, Inc. (RWT) should closely monitor stock movements due to significant implied volatility in the options market, particularly the Oct. 17, 2025 $3 Put option [1] Group 1: Implied Volatility - Implied volatility indicates the market's expectation of future stock movement, with high levels suggesting potential for a significant price change or an upcoming event that could trigger a rally or sell-off [2] - The current high implied volatility for Redwood Trust options may signal a developing trading opportunity, as options traders often seek to sell premium on such options to capture decay [4] Group 2: Analyst Sentiment - Redwood Trust is currently rated Zacks Rank 4 (Sell) within the REIT and Equity Trust industry, which is in the bottom 18% of the Zacks Industry Rank [3] - Over the past 60 days, no analysts have increased earnings estimates for the current quarter, while three have lowered their estimates, resulting in a decrease of the Zacks Consensus Estimate from 20 cents per share to 14 cents [3]