GlaxoSmithKline (NYSE: GSK) shares are trading higher after the Food and Drug Administration approved GSK's Advair Diskus 250/50 for the reduction of exacerbations in patients with chronic obstructive pulmonary disease (COPD). Advair is now the only FDA-approved treatment for the reduction of COPD exacerbations. 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 GSK.

After hitting a one-year high of $58.33 last May, the stock hit a one-year low of $40.51 in March. GSK opened this morning at $44.51. So far today the stock has hit a low of $44.42 and a high of $44.85. As of 12:35, GSK is trading at $44.61, up 0.50 (1.1%). The chart for GSK looks bullish and steady, 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 $37.50 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 three and a half months as long as GSK is above $37.50 at August expiration. GSK would have to fall by more than 15% before we would start to lose money. Learn more about this type of trade here.

GSK hasn't been below $40 at all in the past year and has shown support around $42.50 recently. This trade could be risky if one of the company's drugs runs afoul of the FDA, but even if that happens, that position could be protected by support the stock might find just above $41, where it bottomed out 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 GSK.