RadioShack Corp. (NYSE: RSH) shares are trading higher this morning after the company posted a fourth-quarter profit of $101 million, or 77 cents per share, beating analyst expectations of 72 cents per share. RSH was helped by lower operating costs, which counteracted a drop in same-store sales. 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 RSH.

After hitting a one-year high of $35.00 in June, the stock hit a one-year low of $13.31 in January. RSH opened this morning at $17.03. So far today the stock has hit a low of $17.00 and a high of $19.00. As of 10:40, RSH is trading at $18.50, up $2.76 (17.5%). The chart for RSH looks neutral and 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 $15 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. This particular trade will make an 8.7% return in just two months as long as RSH is above $15 at April expiration. RadioShack would have to fall by more than 18% before we would start to lose money.

RSH hasn't been below $15 by too much in the past year and has shown support around $15.10 recently. This trade could be risky if the US economy continues to worsen, but even if that happens, this position could be protected by the support the stock might receive due to its positive announcement today.

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