HP Inc. Has Unusual Put Option Activity - A 7.4% Short-Put Yield - But Is It a Trap?

Investors are trading out-of-the-money HP Inc. (HPQ) put options expiring in 2 months in heavy volume. That allows short-put HPQ investors to earn a 7.4% yield, ahead of earnings later this month. But could this be a yield trap?

HPQ is trading at $29.11 today, just off its recent peak of $30.05 last week (Aug. 7). HP, Inc., which makes computers, printers, and other computer hardware, is set to report its Q2 earnings in two weeks, on Aug. 26, after the market closes.