Cypress Semiconductor Corporation (NYSE: CY) stock is falling this morning after an analyst at Credit Suisse downgraded SunPower Corp. (NASDAQ: SPWR), in which CY has invested, to "Neutral" from "Outperform." There are also analyst comments out there today about CY that could be hurting the stock. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on CY.

After hitting a one-year low of $16.72 last January, the stock hit a one-year high of $42.79 in November. This morning, CY opened at $26.23. So far today the stock has hit a low of $24.68 and a high of $26.23. As of 11:05, CY is trading at $25.30, down $1.41 (-5.3%). The chart for CY looks bearish and steady, while S&P gives the stock a positive 4 STARS (out of 5) buy rating.

For a bearish hedged play on this stock, I would consider a March bear-call credit spread above the $40 range. A bear-call credit spread is an options position that combines the purchase and sale of call 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 2 months as long as CY is below $40 at March expiration. Cypress would have to rise by more than 21% before we would start to lose money.

CY hasn't been above $40 for more than a few day at a time in the past year and has shown resistance around $30 recently. This trade could be risky if the company's earnings next week impress investors, but even if that happens, this position could be protected by resistance CY might find around $40, where the stock topped out twice since October.

Brent Archer is an options analyst and writer at Investors Observer. At publication time, Brent neither owns nor controls positions in CY or SPWR.