Wells Fargo (NYSE: WFC) shares are trading lower today after conflicting reports have surfaced as to Berkshire-Hathaway's (NYSE: BRK.A) recent actions regarding the company. The AP reports that Warren Buffett's brand disclosed a smaller stake in WFC, while Bloomberg is saying that Berkshire is increasing its Wells Fargo position. Personally, I'm not sure who to believe on this one, but the market is taking WFC lower so far today. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on WFC.

After hitting a one-year high of $37.99 in September, the stock hit a one-year low of $24.38 in January. This morning, WFC opened at $29.64. So far today the stock has hit a low of $28.61 and a high of $29.65. As of 12:05, WFC is trading at $28.71, down 89 cents(-3.0%). The chart for WFC looks neutral and improving, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

For a bearish hedged play on this stock, I would consider a July bear-call credit spread above the $32.50 range. A bear-call credit spread is an options position that combines the purchase and sale of call 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 11.1% return in nine weeks as long as WFC is below $32.50 at July expiration. Wells Fargo would have to rise by more than 12% before we would start to lose money. Learn more about this type of trade here.

WFC hasn't been above $32.50 since February and has shown resistance around $30 recently. This trade could be risky if the flagging US economy turns around quickly, but even if that happens, this position could be protected by resistance WFC might find at its 200 day moving average, which is currently around $32 and falling.

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 WFC or BRK.A.