Bed, Bath, & Beyond (NASDAQ: BBBY) shares are trading higher today after the company posted a first-quarter profit of $76.8 million, or 30 cents per share, beating analysts' estimates of 27 cents per share. 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 BBBY.

After hitting a one-year high of $37.61 last June, the stock hit a one-year low of $24.49 in January. BBBY opened this morning at $29.98. So far today the stock has hit a low of $29.72 and a high of $30.54. As of 12:05, BBBY is trading at $30.28, up $1.70 (6.0%). The chart for BBBY looks bearish 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 $25 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 4.2% return in just seven weeks as long as BBBY is above $25 at August expiration. Bed, Bath & Beyond would have to fall by more than 17% before we would start to lose money. Learn more about this type of trade here.

BBBY hasn't been below $25 for more than a few days in the past year and has shown support around $26.50 recently. This trade could be risky if the economic situation gets worse, but even if that happens, this position could be protected by the support the stock might find around $26, where it bottomed in January.

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 BBBY.