Yahoo! Inc. (NASDAQ: YHOO) shares are trading higher today after a new Sanford C. Bernstein & Co. report suggested this morning that Yahoo would be worth more if it broke up its Internet businesses. The analyst said Yahoo's operations could be valued as high as $39 per share, compared with a current share price closer to $27. If you think that the company won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on YHOO.

After hitting a one year high of $33.61 in May, the stock slipped through the spring and early summer to set its 52 week low of 22.27 in August. Yahoo! opened this morning at $27.78. So far today the stock has hit a low of $27.75 and a high of $28.16. As of 11:30, YHOO is trading at $27.78, up $0.63 (2.2%). The chart for YHOO looks bullish and steady, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

For a bullish hedged play on this stock, I would consider a January bull-put credit spread below the $22.50 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. This particular trade will make a 9.2% return in just 4 months as long as YHOO is above $22.50 at January expiration. Yahoo! would have to fall by more than 19% before we would start to lose money.

YHOO hasn't been below $22.50 by more than a few cents in the past year and has shown support around $25 recently. This trade could be risky if the company's earnings (due out on 10/16) disappoint, but even if that happens, this position could be protected by strong support between $22.50 and $24, where the stock bottomed out in August and September.

Brent Archer is an options analyst and writer at Investors Observer.
DISCLOSURE: At publication time, Brent neither owns nor controls positions in YHOO.