Oshkosh Corp (NYSE: OSK - option chain) shares have moved higher today after the Defense Department announced Wednesday after market close that it awarded a $1.1 billion contract to the military division of OSK for work on military trucks. 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 OSK.

OSK opened this morning at $9.08. So far today the stock has hit a low of $9.00 and a high of $10.38. As of 1:25, OSK is trading at its daily high of $10.38, up $1.49 (16.7%). The chart for OSK looks neutral and S&P gives OSK a 3 STARS (out of 5) hold ranking.

For a bullish hedged play on this stock, I would consider a February bull-put credit spread below the $7.50 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 an 11.1% return in just four months as long as OSK is above $7.50 at February expiration. Oshkosh would have to fall by more than 27% before we would start to lose money. Learn more about this type of trade here.

OSK has been below $7.50 as recently as early December, but the stock has been on the rebound since mid-November and has shown support around $7.75 recently before today's jump higher.

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 OSK.