Akamai Technologies Inc. (Nasdaq: AKAM) shares are trading higher today after AmTech Research initiated coverage on AKAM with a buy rating. Also today, AKAM named Jill A. Greenthal, an adviser at Blackstone Group (NYSE: BX) to its board of directors. 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 AKAM.

After hitting a one-year high of $59.69 in February, the stock dropped to a 52-week low of $27.75 in September. AKAM opened this morning at $36.11. So far today the stock has hit a low of $36.09 and a high of $37.94. As of 12:52, AKAM is trading at $37.30, up $1.68 (4.7%). The chart for AKAM looks bullish but improving, while S&P gives the stock a negative 2 STARS (out of 5) sell rating.

For a bullish hedged play on this stock, I would consider a January bull-put credit spread below the $25 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 4.2% return in just 3 months as long as AKAM is above $25 at January expiration. Akamai would have to fall by more than 33% before we would start to lose money.

AKAM hasn't been below $25 at all in the past year and has shown support around $31 recently. This trade could be risky if the company's earnings (due out on 10/24) disappoint, but even if that happens, this position could be protected by strong support between $29 and $31, where AKAM has held firm for the past two months.

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