Amazon.com (NASDAQ: AMZN) shares are trading higher after CEO Jeffrey P. Bezos said in a letter to shareholders that he very pleased with AMZN's new electronic book-reader Kindle. He added in the letter that all major publishers have embraced the device, demand for the Kindle has been high, and that shareholders should expect more innovation from AMZN. The Kindle is currently out of stock, but AMZN expects to have more devices in stock next week. If you think that the stock won't fall by too much in the coming months, hen now could be a good time to look at a bullish hedged trade on AMZN.

After hitting a one-year low of $44.16 last April, the stock hit a one-year high of $101.09 in October. AMZN opened this morning at $76.48. So far today the stock has hit a low of $76.32 and a high of $80.92. As of 11:55, AMZN is trading at $80.88, up $6.85 (9.3%). The chart for AMZN looks neutral and improving, 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 a May bull-put credit spread below the $60 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 4.8% return in just one month as long as AMZN is above $60 at May expiration. Amazon would have to fall by more than 26% before we would start to lose money. Learn more about this type of trade here.

AMZN hasn't been below $60 since almost a year ago and has shown support around $70 recently. This trade could be risky if the company's earnings (due out in on 4/23) disappoint, but even if that happens, this position could be protected by the support the stock might find around $62, where it bottomed out in February and March.

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 AMZN.