IAC/InterActiveCorp (NASDAQ: IACI) stock is falling this morning as investors worry about a looming power struggle between magnates Barry Diller and John C. Malone over a potential restructuring plan. Diller wants to separate IACI's five major entities into five publicly traded parts, which would strip Malone's Liberty Media (NASDAQ: LINTA) of voting rights in the spinoff companies. Also in the news today is a report that the dispute will likely end up in court sometime in March. 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 IACI.

After hitting a one-year high of $40.99 last February, the stock hit a one-year low of $23.30 last month. This morning, IACI opened at $26.08. So far today the stock has hit a low of $25.52 and a high of $26.44. As of 10:50, IACI is trading at $25.75, down $0.52 (-2.0%). The chart for IACI looks bearish but improving slightly, 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 an April bear-call credit spread above the $30 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 an 8.7% return in 2 and a half months as long as IACI is below $30 at April expiration. IACI would have to rise by more than 17% before we would start to lose money.

ACI hasn't been above $30 by since November and has shown resistance around $27 recently. This trade could be risky if the proposed break-up becomes a reality, but even if that happens, this position could be protected by resistance IACI might find at its 200 day moving average, which is currently around $30 and falling.

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