Tiffany & Co (NYSE: TIF) shares are trading higher after the company posted a first-quarter profit of $64.4 million or 50 cents per share, beating analysts' estimates of 40 cents per share, citing international strength. TIF also raised its outlook for the full year. 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 TIF.

After hitting a one-year high of $57.34 in October, the stock hit a one-year low of $32.84 in January. TIF opened this morning at $49.25. So far today the stock has hit a low of $48.62 and a high of $49.98. As of 12:25, TIF is trading at $48.92, up 1.18 (2.5%). The chart for TIF looks bullish and steady, while S&P gives the stock its highest 5 Stars (out of 5) Strong Buy rating.

For a bullish hedged play on this stock, I would consider an August bull-put credit spread below the $40 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 months as long as TIF is above $40 at August expiration. Tiffany would have to fall by more than 33% before we would start to lose money. Learn more about this type of trade here.

TIF hasn't been below $40 since March and has shown support around $46 recently. This trade could be risky if the international economy slows down as well over the next few months, but even if that happens, that position could be protected by support the stock might find above $40, where it formed a base over the past two 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 TIF.