Shares of Two Harbors Investment Corp. (TWO) are down .06 to 9.76 today. ?TWO is near the bottom of the 52-week range.
Today paper traded 500 TWO Sep 9/10 collars for .17.? ADV is 1497 contracts.? The OI is less than 30 contracts per strike.
The volume went up in two blocks with puts on the offer and calls on the bid.? The volume is over 2800 on both strikes so this collar is going up more.? This looks like a dividend capture play with a possible long underlying component and with long puts and short calls.? TWO?s next dividend is about .26 in March.
30-day implied volatility is 22%.? ?10-day implied volatility is 14%.? 30-day implied volatility is trading below the 10-day historical volatility.
Two Harbors Investment Corp. (Two Harbors) operates as a real estate investment trust (REIT).?