Tiffany & Co. (NYSE: TIF) shares are rising today after the company issued a positive outlook for 2008. TIF forecast 2008 net income between $2.50 and $2.55 per share, based on an anticipated 10% gain in worldwide sales. This is in line with analyst estimates of a $2.50 per share profit for 2008. 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 TIF.

After hitting a one-year high of $57.34 in October, the stock hit a one-year low of $32.84 in January. TIF opened this morning at $40.14. So far today the stock has hit a low of $40.05 and a high of $42.74. As of 11:10, TIF is trading at $41.25, up $3.07 (8.04%). The chart for TIF looks bearish but improving slightly, while S&P gives the stock its highest 5 STARS (out of 5) strong 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 a 4.2% return in just six weeks as long as TIF is above $30 at March expiration. Tiffany would have to fall by more than 27% before we would start to lose money. Learn more about this type of trade here.