PetSmart, Inc operates as a specialty retailer of products, services, and solutions for pets in the United States, Puerto Rico, and Canada, which means that it has no European or Chinese exposure. The stock trades about 1.5 Million shares in a day and has been trading in a 52 week range of $61.30-$77.32. Technically the stock looks weak even though it is possible that it has made a rounding bottom at $62. Today, a trader bought almost 2,000 PETM March 70 Calls for $.90 hoping the stock can recover and move higher after they report earnings on March 5th. The stock has shown strength on earnings rallying 5 of the last 8 quarters. I am currently long the PETM March 70 Calls for $.90, I sold 25% of my position at $1.10 with targets at $1.30, $1.50 and $1.75. I will leave only 25% of my position on into the earnings announcement.
