STX is reporting earnings on 08/02 and I decided to open a trade which should end before earnings, so this trade will end before the report and I will not be holding it through the earnings. Well, at least this is the plan and I hope it will all go according to the plan.
 

For tomorrow morning, I am placing the following trade:

 
BTO 1 STX Jul28 44.00 call
STO 1 STX Jul28 42.00 call
STO 1 STX Jul28 35.00 put
BTO 1 STX Jul28 33.00 put
 

@ 0.26 credit limit
 

Below see the picture of the trade:
 

Why July 28 expiration?
 

• As I mentioned above, the company reports earnings on August 2nd and I want this trade to hopefully end before expiration. Also I selected 17 days to expiration to be able to go further away from the money and collect a decent credit.
   

How did I choose the short strikes?
 

• When I trade conservative trades I use expected move. TOS shows you the expected move for every expiration (and if your platform doesn’t, it can be calculated) in the upper right corner of each option chain expiration. For July 28th the expected move is +/- $2.753 dollars each direction. That means that the stock may fall by $2.753 or go up by $2.753 by July 28th. It is not a 100% guarantee, but there is a chance that it may happen. Most of the time the stock stays within this range, so if you choose your strikes out of this range, you would be playing a safer bet.

• In this trade, I rounded the expected move to $3 dollars and then subtracted from the current price of $38.39 a share to get the short put strike and added it to the recent price to get the call short strike.

Why $2 spread width?
 

• I chose this arbitrarily as I wanted to limit my cash at risk to $200 dollars only, therefore I choose $2 dollars wide spread.

 
How will I be managing this trade?
 

• Since there is a chance that tomorrow morning this trade opens for only 0.26 credit (the range for the trade was 0.17 to 0.34 credit but I moved the slider to the center which is what the trade is likely to get executed) I plan on not to be buying those legs back and let them expire. If I see the stock moving too close to one or the other side, I may choose to close the opposite short leg for 0.02 debit so I can roll the endangered side higher or convert it.