Exxon Mobil Corp. (NYSE: XOM) shares are trading higher this morning, helped by crude oil futures that are rising again after falling from recent highs. XOM is also receiving support from investors expecting the Federal Reserve to once again cut interest rates at its meeting today. Investors hope a big enough cut will finally spur the economy back into gear, which would in turn increase demand for oil. 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 XOM.

After hitting a one-year low of $70.11 last March, the stock hit a one-year high of $95.27 in October. XOM opened this morning at $86.61. So far today the stock has hit a low of $86.12 and a high of $87.90. As of 12:00, XOM is trading at $87.23, up $1.44 (1.7%). The chart for XOM looks bearish and steady, 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 an April bull-put credit spread below the $75 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 one month as long as XOM is above $75 at April expiration. Exxon would have to fall by more than 14% before we would start to lose money.

XOM hasn't been below $75 by more than a few cents since last March and has shown support around $82 recently. This trade could be risky if the US economy continues to worsen and demand for oil slows down dramatically, but even if that happens, this position could be protected by the support the stock might find at its $80, where it has bottomed quite a few times over the past year.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in XOM.