Juniper Networks, Inc. (NASDAQ: JNPR) shares are trading higher today after RBC Capital Markets upgraded the stock to Sector Perform from Outperform as noted by our own Eric Buscemi. We always think what kind of trade might make sense in light of the news. If you think that the company's stock 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 JNPR.

After hitting a one-year low of $17.21 in March, the stock hit a one-year high of $37.95 in October. JNPR opened this morning at $26.91. So far today the stock has hit a low of $26.54 and a high of $27.36. As of 11:20, JNPR is trading at $27.16, up 97 cents (3.7%). The chart for JNPR looks bearish but improving slightly, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

For a bullish hedged play on this stock, I would consider an April bull-put credit spread below the $22.50 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 will make an 8.7% return in just two months as long as JNPR is above $22.50 at April expiration. Juniper would have to fall by more than 17% before we would start to lose money.

JNPR hasn't been below $22.50 since last May and has shown support around $25 recently. This trade could be risky if JNPR continues its recent downward slide, but even if that happens, this position could be protected by the support the stock has found just below $25 over the past month.

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