Bristol-Myers Squibb Co. (NYSE: BMY) shares are trading higher after the company reported a first-quarter profit of $661 million, or 33 cents per share. BMY's adjusted profit came in at 42 cents per share, just above analysts' estimates of 41 cents per share. 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 BMY.

After hitting a one-year high of $32.35 in July, the stock hit a one-year low of $20.05 in March. BMY opened this morning at $11.66. So far today the stock has hit a low of $11.10 and a high of $11.97. As of 12:30, BMY is trading at $11.27, up 57 cents(5.3%). The chart for BMY 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 June bull-put credit spread below the $20 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 12.1% return in just two months as long as BMY is above $20 at June expiration. Bristol-Myers would have to fall by more than 8% before we would start to lose money. Learn more about this type of trade here.

BMY hasn't been below $20 at all in the past year and has shown support around $21.60 recently. This trade could be risky if one of the company's drugs runs into problems with the FDA, but even if that happens, this position could be protected by the support the stock might find around $20, where it bounced in 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 BMY.