Seagate reports earnings on July 30, but I don't believe the stock has a whole lot of downside post-earnings. Why? Well, Seagate already pre-announced rough estimates of revenue and margin for the quarter. The company expects to report record unit shipments, but lowered revenue due to a one-time supplier quality issue. The stock dropped immediately after the announcement, but has been on an uptrend ever since. It seems investors don't view Seagate's current quarter in a bad light.
Despite this fact, August-expiry options are trading at a premium. $22 puts can be written for a 21-cent premium, $23 puts can be written for a 37-cent premium, $24 puts can be written for a 62-cent premium, and $25 puts can be written for a 92-cent premium. These premiums represent very solid yields of between 1% and 3.7% for a mere 3 weeks.
Given Seagate's bullish outlook, low valuation, and strong dividend and shareholder buyback program, I find it very hard to believe that significant downside is left in the stock, especially since the quarter's revenue and margin were already pre-announced. The $22 strike represents a discount of approximately 15% to current trading prices, and such a strong downside move is highly unlikely given the circumstances. Even in the improbable event that such a move does occur, you could do much worse than picking up Seagate shares at current valuations.
Disclosure: I am long STX.