Nucor Corp. (NYSE: NUE) shares are rising today after the company reported a fourth-quarter profit of $364.8 million, or $1.26 per share, above analysts' estimates of $1.21 per share. 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 NUE.

After hitting a one-year high of $69.93 in June, the stock hit a one-year low of $41.62 in August. NUE opened this morning at $53.81. So far today the stock has hit a low of $53.77 and a high of $55.72. As of 10:.30, NUE is trading at $54.83, up $2.38 (4.5%). The chart for NUE looks bearish and steady, 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 $42.50 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. For this particular trade, we will make an 8.7% return in just two months as long as NUE is above $42.50 at March expiration. Nucor would have to fall by more than 25% before we would start to lose money.

NUE hasn't been below $42.50 since August and has shown support around $52 recently. This trade could be risky if the sour feeling surrounding the economy continues to pull cyclical stocks like steel manufactures down, but even if that happens, this position could be protected by the support the stock might find around $50, where it has bounced twice in the past few months.

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