Marvell Technology Group Ltd. (NASDAQ: MRVL) shares are trading higher after tech bellwether Intel (NASDAQ: INTC) reported a first quarter profit of $1.44 billion, or 25 cents per share, in line with analysts' estimates. While many investors were expecting weak results, INTC noted in a press release that microprocessor sales were in line with seasonal trends, which could be a good sign for MRVL. If you think that the 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 MRVL.

After hitting a one-year high of $20.04 in July, the stock hit a one-year low of $9.77 in January. MRVL opened this morning at $10.76. So far today the stock has hit a low of $10.53 and a high of $10.95. As of 12:30, MRVL is trading at $10.91, up $0.41 (3.9%). The chart for MRVL looks bullish but deteriorating, 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 August bull-put credit spread below the $7.50 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, we will make an 8.7% return in just four months as long as MRVL is above $7.50 at August expiration. Marvell would have to fall by more than 30% before we would start to lose money. Learn more about this type of trade here.

MRVL hasn't been below $9.50 at all in the past year and has shown support around $10.75 recently. This trade could be risky if the company's earnings (due out in late May or early June) disappoint, but even if that happens, this position could be protected by the support the stock might find around $10, where it has bottomed out over the past four months.

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 MRVL. He does control a bullish hedged position in INTC.