Allergan Inc. (NYSE: AGN) opened at $119.35. So far today the stock has hit a low of $118.82 and a high of $119.75. As of 10:40, AGN is trading at $119.14, down $0.23 (-0.2%).

The stock climbed sharply throughout the spring to reach a year high of $125.00 on the final day of May, but has been falling quickly over the last two weeks. Jim Cramer believes that this stock fell more than it should have after Friday's downgrade from Morgan Stanley. He believes shares deserve to be higher, and with the stock falling a bit more still today, it may be a good time to go bargain hunting. Recent technical indicators for AGN have been bullish and steady, while S&P gives the stock a positive 4 STARS (out of 5) buy rating.

For a bullish hedged play on this stock, I would consider an October bull-put credit spread below the $100 range. AGN hasn't been below $100 since last June and has shown support around $117 recently. This trade could be risky if the FDA finds trouble with one of AGN's medical products, but even if that happens, the stock could find some strong historical support around $105.

Brent Archer is an options analyst and writer at Investors Observer. DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in AGN.