Microsoft Corporation (NASDAQ: MSFT) opened at $29.71. So far today the stock has hit a low of $29.58 and a high of $29.80. As of 10:40, MSFT is trading at $29.64, up $0.17 (0.6%).

After hitting a one-year high of $31.48 in January, the stock has seen resistance at $31 over the past couple of months. Amazon.com (NASDAQ: AMZN) announced yesterday that it will begin selling high-definition independent films in the HD DVD format through its on-demand DVD printing service. Microsoft will supply the technology for this service. Recent technical indicators for MSFT have been bullish but deteriorating, while S&P gives the stock a very positive 5 STARS (out of 5) strong buy rating.

For a bullish hedged play on this stock, I would consider an October bull-put credit spread below the $27.50 range. MSFT hasn't been below $27.50 for more than a few days at a time since September and has shown support around $28.75 recently. This trade could be risky if the company's earnings (due out on July 19) disappoint, but even if that happens, it looks like this stock could find support from its 200-day moving average, which it has been testing over the past few days.

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 a position in AMZN. He does control a neutral-to-slightly bullish hedged position in MSFT.