Shares of Petco Health and Wellness Company, Inc. (WOOF) surged 5.38% in intraday trading on Tuesday, as investors eagerly await the company's upcoming earnings report. The significant uptick in stock price comes amid heightened options activity, suggesting that market participants are positioning themselves for potential volatility following the earnings announcement.

Options traders are showing particular interest in Petco, with pre-earnings options volume reaching 3.3 times the normal level. Notably, call options are dramatically outpacing puts by a ratio of 22 to 1, indicating a bullish sentiment among options traders. This surge in call options suggests that many investors are betting on a positive earnings surprise or further upside in the stock price.

The implied volatility derived from options pricing indicates that the market is bracing for a potential 14.4% move in Petco's share price following the earnings release. This anticipated volatility underscores the importance of the upcoming financial results for the pet health and wellness company. Investors and analysts will be closely watching key metrics such as revenue growth, profit margins, and forward guidance to gauge the company's performance and future prospects in the competitive pet care industry.