Motorola Inc. (NYSE: MOT) shares are trading higher today after the company announced this morning that CEO Ed Zander will step down on January 1. He will be replaced by President and Chief Operating Officer Greg Brown on an interim basis until the company's annual shareholders' meeting in May. with this change being anticipated, it may create a floor for MOT's stock price that could hold for a while. A situation like this is ripe for a credit spread trade, so 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 MOT.

After hitting a one-year high of $22.55 in December 2006, the stock hit a one-year low of $14.87 on Tuesday. MOT opened this morning at $16.30. So far today the stock has hit a low of $15.76 and a high of $16.29. As of 11:05, MOT is trading at $15.78, up 13 cents (0.8%). The chart for MOT looks bearish 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 an April bull-put credit spread below the $13 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. For this particular trade, we will make an 11.7% return in just 5 months as long as MOT is above $13 at Arpil expiration, which is before the new CEO will be officially chosen. MOT would have to fall by more than 17% before we would start to lose money.

MOT hasn't been below $14.50 at all in the past year and has shown support around $15 recently. This trade could be risky if the economic slowdown materializes, but even if that happens, this stock could be protected by strong support it found just below $15 earlier this month.

Brent Archer is an options analyst and writer at Investors Observer.