Redwood Trust (RWT, news, chart) implied volatility is elevated as the stock sinks $3.46 to $23.24. There is no company specific news today. Redwood Trust was established in 1994 and invests in residential real estate loans. It holds or credit enhances over 380,000 high quality residential loaans with a total balance of approximately $157 billion, according to its web site. Investors seem a little bit worried about the outlook for RWT. Not only are shares falling, but implied volatility is on the rise. The IV of the July 22.5 puts, the day’s most actives, is 123 percent, or roughly 40 percent higher on the day. 3,700 RWT puts and 1,600 calls have traded on the day.