Reliance Steel Attracts Stock Option Bulls
Option activity has turned bullish on Reliance Steel & Aluminum ahead of its earnings report next week.
The December 38 calls saw some quick action, followed by more than 2,000 December 41s in some big chunks for $2, according to OptionMonster's real-time tracking systems.
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.
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