General Electric Co. (NYSE: GE) shares are rising today after reporting a fourth-quarter profit of $6.7 billion, or 66 cents per share, meeting Wall Street's expectations. The company cited strong demand for heavy equipment such as jet engines and electricity-producing turbines as reasons for the good performance in its earning report. GE's earnings statement sent stocks up at the opening bell, as investors, due to the size and diversity of GE's operations, see GE's earnings as a good harbinger for the U.S. economy. 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 GE.

After hitting a one-year high of $42.15 in October, the stock hit a one-year low of $32.92 yesterday. GE opened this morning at $33.92. So far today the stock has hit a low of $33.80 and a high of $34.98. As of 10:25, GE is trading at $34.78, up $1.57 (4.7%). The chart for GE looks bearish but improving, while S&P gives the stock a positive 4 STARS (out of 5) buy rating.

For a bullish hedged play on this stock, I would consider a March bull-put credit spread below the $30 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 8% return in just two months as long as GE is above $30 at March expiration. GE would have to fall by more than 13% before we would start to lose money.

GE hasn't been below $32 at all in the past year and has shown support around $32.90 recently. This trade could be risky if the US economy continues into the toilet, but even if that happens, this position could be protected by bargain hunters who may be looking to pick up a big-name stock at a discount price.

Brent Archer is an options analyst and writer at Investors Observer. At publication time, Brent both owns and controls bullish hedged positions in GE.