The trades lock in an entry price on the stock so that if the shares climb, the options will move even more. The calls traded with the shares down about 1 percent shortly after the open, but RS then pushed its way higher and closed the session up 4.05 percent to $39.55.
Reliance provides metal-processing services and distributes more than 100,000 products to customers in a range of industries. Its quarterly results are scheduled for Oct. 27.
More than 3,600 calls traded against 200 puts at all strikes in the name, a reflection of the bullish sentiment.
Second Opinion: Steel Industry Faces Tough Times
—Najarian has no positions in RS.
Options Trading School:
Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC's "Fast Money" and co-founder of OptionMonster.com.