RS Options Underpriced Ahead of Earnings and Tariff Risk

Steel, tariffs, and earnings—Reliance, Inc. (RS) is sitting on a powder keg. With social mentions up 138% and implied volatility below the one-year average, the options market appears to be asleep at the wheel just weeks before Reliance, Inc.’s (RS) next earnings report. But history tells a different story—this stock has consistently made outsized moves around both earnings and macroeconomic news. In today’s newsletter, we break down why May options are mispriced, how the data supports a breakout setup, and the straddle strategy we’re eyeing before the market wakes up.

Options Decoded is the companion newsletter that provides specific trade ideas to exploit the conditions mentioned in this newsletter. Options Decoded includes FREE bi-weekly coaching sessions as well. If you've already signed up for Options Decoded, check your email for the latest issue.