Walter Investment Management (WAC), a Tampa, FL REIT and asset manager, is trading down $1.81 to $17.47 and implied volatility is up after the company announced plans to buy Green Tree for $1.07 billion. Walter Investment will take on $20 million in debt and issue 1.8 million shares. The deal is expected to close in the third quarter and WAC will no longer qualify as a REIT. The most active options are the September 20 calls. 3356 traded (64 percent at the Ask) vs. 204 in open interest. Meanwhile, Sep 17 and 18 puts are the next most actives and trading 55 percent on the bid. So, while the stock is reeling, the overall flow looks somewhat bullish. Implied volatility is up 35 percent to 27.