Foot Locker (NYSE: FL) shares are trading higher after the company reported yesterday evening that first-quarter profit fell 82% to $3 million, hurt by an impairment charge and nearly flat sales. The company posted adjusted earnings of 14 cents per share on sales of $1.31 billion, while analysts predicted profit of 14 cents per share on revenue of $1.28 billion. The athletic footwear retailer also reaffirmed its fiscal year outlook and in this time of uncertainty, investors applauded this normally mediocre result. 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 FL.

After hitting a one-year high of $23.60 in July, the stock hit a one-year low of $9.05 in January. FL opened this morning at $12.81. So far today the stock has hit a low of $12.81 and a high of $13.71. As of 12:05, FL is trading at $13.39, up $1.31 (10.8%). The chart for FL looks bullish and steady while S&P gives FL a neutral 3 STARS (out of 5) hold rating.

For a bullish hedged play on this stock, I would consider a November bull-put credit spread below the $10 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 13.6% return in just six months as long as FL is above $10 at November expiration. Foot Locker would have to fall by more than 24% before we would start to lose money. Learn more about this type of trade here.

FL hasn't been below $9 at all in the past year and has shown support around $11 recently. This trade could be risky if the economic malaise continues in the US, but even if that happens, that position could be protected by support the stock might find just above $10, where it bottomed out three times in the past few 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 FL.