Continental Airlines (NYSE: CAL - option chain) shares are soaring higher today after the company announced that it expects more than $100 million a year in fees and savings by charging travelers to check luggage. Obviously, checked luggage fees irritate travelers, but it is good for the company, then it should be good for the stock, and if you make a little money on the stock then you can afford to pay the extra fees and maybe even a mini-bottle of whiskey too. CAL is also getting a lift today from the drastic slide in oil prices, which have almost dropped below $100. 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 CAL.

CAL opened this morning at $15.52. So far today the stock has hit a low of $15.13 and a high of $17.90. As of 12:10, cAL is trading at $17.62, up $1.55 (9.6%). The chart for CAL looks neutral and S&P gives CAL a 3 STARS (out of 5) hold ranking.

For a bullish hedged play on this stock, I would consider an October 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 an 8.7% return in just five weeks as long as CAL is above $10 at October expiration. Continental would have to fall by more than 43% before we would start to lose money. Learn more about this type of trade here.

CAL hasn't been below $10 since mid-July and has shown support around $15 recently.

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 CAL.