Redwood Trust Stock Options
| RWT Stock | USD 6.55 0.07 1.08% |
Redwood Trust's latest option contracts expiring on April 17th 2025 are carrying combined implied volatility of 0.79 with a put-to-call open interest ratio of 0.85 over 23 outstanding agreements suggesting investors are buying slightly more calls than puts on contracts expiring on April 17th 2025.
Open Interest Against April 17th 2025 Option Contracts
Redwood Trust option prices can potentially be used to forecast stock returns because most option chains provide information not only about the current prices but also about the future conditions in Redwood Trust's lending market. For example, when Redwood Trust's puts are not actively trading or completely missing in the marketplace, investors can use it to internalize expected shorting costs. So if an investor is writing a put option on Redwood Trust, he or she must hedge the risk by shorting Redwood Trust stock over its option's life.
2025-04-17
The chart above shows Redwood Trust's distribution of open interest by maturity on contracts that have not yet been settled. The area between the two highest points is the projection of the price at expiration. Redwood Trust's open interest chart also provides vital information regarding the liquidity of an option. If there is no open interest for Redwood Trust's option, there is no secondary market available for investors to trade.
In The Money vs. Out of Money Option Contracts on Redwood Trust
Analyzing Redwood Trust's in-the-money options over time can help investors to take a profitable long position in Redwood Trust regardless of its overall volatility. This is especially true when Redwood Trust's options are deep in the money. These options can be identified using deltas that are over 0.75. Deep in-the-money Redwood Trust's options could be used as guardians of the underlying stock as they move almost dollar for dollar with Redwood Trust's stock while costing only a fraction of its price.
Redwood Trust In The Money Call Balance
When Redwood Trust's strike price is surpassing the current stock price, the option contract against Redwood Trust stock is said to be in the money. When it comes to buying Redwood Trust's options that are 'In the Money' or 'Out of the Money', the choice depends on your outlook for the underlying security, financial situation, and what you are trying to achieve.
While 'out-of-the-money' option contracts written on Redwood Trust are typically viewed as the more aggressive, there are potential upsides to purchasing these types of options contracts. For one, the cost to buy an 'Out of the Money' option is lower than the cost to buy an 'In the Money' option. This cost-benefit is due to the fact that at the time of the purchase, 'Out of the Money' contracts have no intrinsic value. So, while the potential for a 100% loss is more significant, the cost and risk to enter the trade are lower.
Redwood Current Options Market Mood
Redwood Trust's open interest and total value indicators provide investors with the necessary information to digest the overall options buildup for its expiring contracts. In addition, it helps Redwood Stock's traders understand whether a recent fall or rise in the market is unreasonable and if the time has come to take contrarian positions. These ratios are calculated based on options trading volumes and current open interest.
Put-to-Call Open Interest
Put-to-Call Volume
Unfortunately, most Redwood Trust's options investors are not very successful. Redwood Trust's option open interest and volume spread between outstanding puts and calls are regarded by many investors as reliable indicators of the overall future market direction.
Rule 16 of the current Redwood contract
Base on the Rule 16, the options market is currently suggesting that Redwood Trust will have an average daily up or down price movement of about 0.0494% per day over the life of the 2025-04-17 option contract. With Redwood Trust trading at USD 6.55, that is roughly USD 0.003234. If you think that the market is fully incorporating Redwood Trust's daily price movement you should consider buying Redwood Trust options at the current volatility level of 0.79%. But if you have an opposite viewpoint you should avoid it and even consider selling them.
Redwood |
Purchasing Redwood Trust options can give investors a meaningful hedge against losses and, therefore, could be used conservatively to decrease the volatility of your portfolio. However, many options could also amount to little more than gambling, significantly enhancing your overall portfolio risk. One simple example of these aggressive strategies is the sale of "uncovered" Redwood calls. Remember, the seller must deliver Redwood Trust stock to the call owner when a call is exercised.
Redwood Trust Option Chain
When Redwood Trust's strike price is surpassing the current stock price, the option contract against Redwood Trust stock is said to be in the money. When it comes to buying options that are ITM or OTM, the choice depends on your outlook for the underlying security, financial situation, and what you are trying to achieve.
Redwood Trust's option chain is a display of a range of information that helps investors for ways to trade options on Redwood. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Redwood. It also shows strike prices and maturity days for a Redwood Trust against a given expiration period. The table below combines all the option information in the form of a chain but before you use it, remember that it entails significant risk and it is not for everyone. | Open Int | Strike Price | Current Spread | Last Price | |||
Call | RWT250417C00003000 | 1 | 3.0 | 3.5 - 3.7 | 3.4 | In |
Call | RWT250417C00004000 | 40 | 4.0 | 2.5 - 2.65 | 3.1 | In |
Call | RWT250417C00006000 | 37 | 6.0 | 0.6 - 0.75 | 0.55 | In |
Call | RWT250417C00007000 | 542 | 7.0 | 0.0 - 0.2 | 0.15 | Out |
Call | RWT250417C00008000 | 3240 | 8.0 | 0.0 - 0.05 | 0.05 | Out |
Call | RWT250417C00009000 | 5 | 9.0 | 0.0 - 0.1 | 0.06 | Out |
Call | RWT250417C00010000 | 0 | 10.0 | 0.0 - 0.15 | 0.15 | |
Call | RWT250417C00011000 | 0 | 11.0 | 0.0 - 0.75 | 0.75 | |
Call | RWT250417C00012000 | 0 | 12.0 | 0.0 - 0.05 | 0.05 | |
Call | RWT250417C00013000 | 0 | 13.0 | 0.0 - 0.75 | 0.75 | |
Call | RWT250417C00014000 | 0 | 14.0 | 0.0 - 0.75 | 0.75 | |
Call | RWT250417C00015000 | 0 | 15.0 | 0.0 - 0.75 | 0.75 | |
Put | RWT250417P00005000 | 5 | 5.0 | 0.0 - 0.1 | 0.05 | Out |
Put | RWT250417P00006000 | 3151 | 6.0 | 0.15 - 0.25 | 0.2 | Out |
Put | RWT250417P00007000 | 113 | 7.0 | 0.0 - 0.8 | 0.85 | In |
Put | RWT250417P00008000 | 19 | 8.0 | 1.5 - 1.65 | 1.29 | In |
Put | RWT250417P00009000 | 0 | 9.0 | 2.45 - 2.65 | 2.45 | In |
Put | RWT250417P00010000 | 0 | 10.0 | 3.5 - 3.7 | 3.5 | In |
Put | RWT250417P00011000 | 0 | 11.0 | 4.5 - 5.3 | 4.5 | In |
Put | RWT250417P00012000 | 0 | 12.0 | 5.5 - 5.6 | 5.5 | In |
Put | RWT250417P00013000 | 0 | 13.0 | 6.5 - 6.6 | 6.5 | In |
Put | RWT250417P00014000 | 0 | 14.0 | 7.5 - 7.6 | 7.1 | In |
Put | RWT250417P00015000 | 0 | 15.0 | 8.4 - 8.6 | 7.8 | In |
Redwood Trust Market Cap Over Time
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| Timeline |
Redwood Total Stockholder Equity
Total Stockholder Equity |
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Redwood Trust Corporate Directors
| Georganne Proctor | Independent Director | Profile | |
| Deborah Horvath | Independent Director | Profile | |
| Jeffrey Pero | Independent Director | Profile | |
| Garnet Kanouse | Managing Director - Head of Residential business | Profile |
Additional Tools for Redwood Stock Analysis
When running Redwood Trust's price analysis, check to measure Redwood Trust's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Redwood Trust is operating at the current time. Most of Redwood Trust's value examination focuses on studying past and present price action to predict the probability of Redwood Trust's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Redwood Trust's price. Additionally, you may evaluate how the addition of Redwood Trust to your portfolios can decrease your overall portfolio volatility.