Though earnings season is winding down, options trading investors are seeing several opportunities this week, especially among specialty retailers. One such chain is PetSmart (NASDAQ: PETM), purveyor of all that a pet owner could ever need. The company reports on Wednesday after the open, with analysts expecting a 20% gain in EPS from a year ago. That compares favorably with the average 26% increase the company has logged over the past four quarters.

The stock has performed well after recent reports, especially when looking out over a few weeks. Currently the shares are pulling back from an all-time high, a move that provides an improved entry point for this trade. This retreat is but a small blip in an overall strong uptrend that has yielded a 50% gain over the past nine months.

The sentiment backdrop is shaping up bullishly as well, as we’re seeing plenty of skepticism that could unwind into buying pressure. Only seven of 19 analysts rate the stock a “buy,” leaving ample room for upgrades. The Put/Call ratio is coming off its highest peak since August, which is when the stock embarked on its current rally. Short interest is also high enough that a short squeeze could come into play.

Pet owners don’t tend to skimp on their pets, even when times are tough. PETM’s profit growth has demonstrated that well enough. Earnings may not cause the shares to explode after earnings on Wednesday, but they should provide a renewed boost into new-high territory. With plenty of doubters among analysts, options traders, and the shorts, PETM’s rally has plenty of legs (the four-legged variety, that is).

We’re going out a little longer on this option play because 1) the overall uptrend has some staying power that we want to fully leverage, and 2) the option spreads in the July series are much more favorable. Buy the PETM July 40 Call for $4.50 or less.