Barrick Gold (NYSE: ABX) shares are trading higher today as gold futures are on the move higher. 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 ABX.

After hitting a one-year low of $27.79 last June, the stock hit a one-year high of $54.74 in March. ABX opened this morning at $41.06. So far today the stock has hit a low of $40.70 and a high of $41.50. As of 12:10, ABX is trading at $40.73, up 0.29 (0.7%). The chart for ABX looks neutral and improving, while S&P gives the stock a positive 4 STARS (out of 5) buy rating.

For a bullish hedged play on this stock, I would consider an October bull-put credit spread below the $32.50 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 a 16.3% return in just four months as long as ABX is above $32.50 at October expiration. Barrick would have to fall by more than 20% before we would start to lose money.

ABX hasn't been below $35 at all since August and has shown support around $38 recently. This trade could be risky if the dollar recovers and gold futures fall, but even if that happens, this position could be protected by the support the stock might find around $37 where it has formed a bottom over the past seven months.

Brent Archer is an options analyst and writer at Investors Observer. At publication time, Brent neither owns nor controls positions in ABX.