InterContinental Exchange (NYSE: ICE) shares are falling today after the company released a statement in response to Congressional proposals to modify the operation of regulated global energy exchanges. The company called the proposals arbitrary controls that would adversely affect consumers, market prices, and the competitiveness of the U.S. markets. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on ICE.

After hitting a one-year high of $194.92 in December, the stock hit a one-year low of $110.25 in March. This morning, ICE opened at $159.37. So far today the stock has hit a low of $156.07 and a high of $159.90. As of 12:00, ICE is trading at $156.57, down $3.15 (-2.0%). The chart for ICE looks bullish and steady, while S&P gives the stock a neutral 3 Stars (out of 5) Hold rating.

For a bearish hedged play on this stock, I would consider a September bear-call credit spread above the $200 range. A bear-call credit spread is an options position that combines the purchase and sale of call 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 four and a half months as long as ICE is below $200 at September expiration. ICE would have to rise by more than 24% before we would start to lose money. Learn more about this type of trade here.

ICE hasn't been above $195 at all in the past year and has shown resistance around $167 recently. This trade could be risky if the company's earnings (due out in late July) are a positive surprise, but even if that happens, this position could be protected by resistance ICE might find around $195, where it topped out back 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 ICE.

eResearchTechnology (NASDAQ: ERES) provides technology and services to the pharmaceutical, biotechnology and medical device industries. The company streamlines the clinical trials process by enabling customers to automate the collection, analysis and distribution of data in all phases of clinical development. The firm's flagship product, EXPeRT, processes and interprets electrocardiogram data collected during trials, to insure cardiac safety. eResearchTechnology operates in the US and the UK.

The firm pleased investors earlier in the week, when it reported Q1 EPS of 11 cents and revenues of $33.7 million. Wall Street analysts had been looking for nine cents and $31.6 million. Management also guided Q2 EPS to 10-12 cents (ten cent Street), Q2 revenues to $34-$36 million ($32.95M Street), FY08 EPS to 44-49 cents (44 cent Street) and FY08 revenues to $133-$140 million ($134.99M Street). Friedman Billings subsequently reiterated its "outperform" rating on the shares and boosted its price target to $18.

NVIDIA (NASDAQ: NVDA) shares are trading higher today after the company reported a first-quarter profit of $176.8 million, or 30 cents per share. Although the adjusted profit of 36 cents per share missed analyst estimates of 38 cents per share, a few analysts upgraded NVDA saying margin growth and new products should improve NVDA's prospects through the 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 NVDA.

After hitting a one-year high of $39.67 in October, the stock hit a one-year low of $17.31 in March. NVDA opened this morning at $22.01. So far today the stock has hit a low of $21.97 and a high of $23.39. As of 12:00, NVDA is trading at $23.38, up 1.43 (6.5%). The chart for NVDA looks bullish but deteriorating slightly, 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 a September bull-put credit spread below the $17.50 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 9.9% return in just five and a half months as long as NVDA is above $17.50 at September expiration. NVIDIA would have to fall by more than 25% before we would start to lose money. Learn more about this type of trade here.

NVDA hasn't been below $17.50 by more than a few cents at all in the past year and has shown support around $22 recently. This trade could be risky if the company's next earnings (due out in mid-August) disappoint, but even if that happens, this position could be protected by the support the stock might find from its 50-day moving average, which is currently around $20.

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 NVDA.

Exxon Mobil (NYSE: XOM) shares are falling today even though crude oil prices continue to make record highs as proponents of separating the chief executive and chairman roles at the company announced they will take their case to institutional investors and proxy voters. The group of dissidents includes descendants of John D. Rockefeller, the founder of Exxon's corporate ancestor Standard Oil.. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on XOM.

After hitting a one-year high of $95.27 in October, the stock hit a one-year low of $77.55 in January. This morning, XOM opened at $89.37. So far today the stock has hit a low of $87.97 and a high of $89.59. As of 11:45, XOM is trading at $88.65, down 0.72 (-0.8%). The chart for XOM looks bullish but deteriorating, while S&P gives the stock a positive 4 STARS (out of 5) buy rating.

For a bearish hedged play on this stock, I would consider a July bear-call credit spread above the $100 range. A bear-call credit spread is an options position that combines the purchase and sale of call 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 8.0% return in ten weeks as long as XOM is below $100 at July expiration. Exxon would have to rise by more than 13% before we would start to lose money. Learn more about this type of trade here.

XOM hasn't been above $96 at all in the past year and has shown resistance around $95 recently. This trade could be risky if crude oil prices continue to skyrocket, but even if that happens, this position could be protected by resistance XOM might find at $95, where it has topped out four times in the past year.

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 XOM.

Airgas Inc. (NYSE: ARG) is the largest U.S. distributor of industrial gases, medical gases, specialty gases and welding equipment. The firm is also one of the largest U.S. distributors of safety products, the largest U.S. producer of nitrous oxide and dry ice, the largest liquid carbon dioxide producer in the Southeast, and a leading distributor of process chemicals, refrigerants, and ammonia products. More than 14,000 employees work at over 1,100 locations, including branches, retail stores, gas fill plants, specialty gas labs, production facilities and distribution centers.

The firm surprised investors earlier in the week, when it reported fiscal Q4 EPS of 78 cents and revenues of $1.09 billion. Analysts had been looking for 73 cents and $1.07 billion. The CEO noted that strategic product categories (healthcare, research, environmental, food & beverage) posted 11% organic growth in the quarter. The EPS figure was a company record. Management also guided Q1 EPS to 79-81 cents (74 cent consensus) and FY09 EPS to $3.24-$3.40 ($3.10 consensus).

Lehman Brothers (NYSE: LEH) shares are falling today as an SEC official has warned that future investment banks that get into trouble may not get the same bailout that Bear Stearns (NYSE: BSC) did. Director of Trading and Markets at the SEC Eric Sirri told the House Investment and Insurance Subcommittee that the liquidity help given to BSC may not necessarily be repeated if another bank has trouble. These words have dragged down LEH in trading yesterday afternoon and so far today. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on LEH.

After hitting a one-year high of $82.05 in June, the stock hit a one-year low of $20.25 in March. This morning, LEH opened at $44.19. So far today the stock has hit a low of $41.67 and a high of $44.19. As of 12:40, LEH is trading at $42.67, down 0.97 (-2.2%). The chart for LEH looks neutral and improving, while S&P gives the stock a neutral 3 Stars (out of 5) Hold rating.

For a bearish hedged play on this stock, I would consider a June bear-call credit spread above the $50 range. A bear-call credit spread is an options position that combines the purchase and sale of call 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 14.2% return in six weeks as long as LEH is below $50 at June expiration. LEH would have to rise by more than 17% before we would start to lose money. Learn more about this type of trade here.

LEH hasn't been above $50 since mid-February and has shown resistance around $47 recently. This trade could be risky if the company's earnings (due out in mid-June) are a positive surprise, but even if that happens, this position could be protected by resistance HSY might find from its 50-day moving average, which is currently around $45.

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 LEH or BSC.

General Mills (NYSE: GIS) shares are trading higher after Goldman Sachs upgraded the stock to "Buy" from "Neutral," citing healthy earnings growth. 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 GIS.

After hitting a one-year low of $51.00 in January, the stock hit a one-year high of $62.50 last month. GIS opened this morning at $61.48. So far today the stock has hit a low of $61.33 and a high of $62.00. As of 12:54, GIS is trading at $61.58, up 0.68 (1.12%). The chart for GIS looks bullish but deteriorating slightly, 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 a July bull-put credit spread below the $55 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 6.4% return in just 6 weeks as long as GIS is above $55 at July expiration. Evergreen would have to fall by more than 10% before we would start to lose money. Learn more about this type of trade here.

GIS hasn't been below $55 by more than a few cents since February and has shown support around $60 recently. This trade could be risky if an economic recovery causes investors to rotate out of defensive stocks, but even if that happens, this position could be protected by the support the stock might find at its 200-day moving average, which is currently around $57.50.

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 GIS.

Google (NASDAQ: GOOG) shares are trading higher today as GOOG is holding its annual shareholders meeting today. In an AP article previewing the conference, an analyst at Canaccord Adams praised the company, saying, "If you want to invest in the Internet space, where else do you want to be but Google?" 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 GOOG.

After hitting a one-year high of $747.24 in November, the stock hit a one-year low of $412.11 in March. GOOG opened this morning at $586.20. So far today the stock has hit a low of $582.05 and a high of $589.30. As of 12:20, GOOG is trading at $585.23, up 6.23 (1.1%). The chart for GOOG looks bullish 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 a May bull-put credit spread below the $540 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 5.3% return in just one week as long as GOOG is above $540 at May expiration next Friday. Google would have to fall by more than 7% before we would start to lose money. Learn more about this type of trade here.

GOOG hasn't been below $540 since rising sharply in April and has shown support around $579 recently. This trade could be risky if the economy continues to weaken and the stock reverses course, but even if that happens, this position could be protected by the support the stock might find around $540, where it found some support after its initial climb after its last earnings release.

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 GOOG.

Coinstar (NASDAQ: CSTR) offers North American and U.K. retailers a range of storefront service and entertainment devices. These include coin counters, kiddie rides, bulk vending machines, skill-crane games and point-of-sale terminals. The firm also provides self-service DVD movie rental/purchase kiosks and provides money transfer services, prepaid wireless products, stored value cards, payroll cards and prepaid debit cards. Coinstar products and services are distributed through more than 53,000 retail stores. Corporate clients include Wal-Mart (NYSE: WMT), Kroger (NYSE: KR) and Walgreen (NYSE: WAG).

The company surprised the Street last week, when it reported Q1 EPS of 18 cents and revenues of $190.5 million. Analysts had been expecting four cents and $182.7 million. Management also guided Q2 EPS to 8-15 cents (12 cent consensus), Q2 revenues to $200-$210 million ($202.19M consensus), FY08 EPS to 60-75 cents (57 cent consensus) and FY08 revenues to $850-$900 million ($829.83M consensus). DA Davidson subsequently upgraded the stock to "buy".

Amkor Technology (NASDAQ: AMKR) is a leading provider of semiconductor assembly and test services. The firm offers semiconductor companies and electronics manufacturers a complete set of microelectronics manufacturing services, including die bonding, wire bonding, chip encapsulation, and verification of function, current, timing, and voltage. Clients include IBM (NYSE: IBM), Intel (NASDAQ: INTC) and Texas Instruments (NYSE: TXN).

The company surprised the Street last week, when it reported Q1 EPS of 36 cents and revenues of $699.5 million. Analysts had been looking for 26 cents and $684.3 million. The CEO attributed success to customer demand for wireless communications and networking applications. Management also guided Q2 EPS to 32-36 cents (28 cent consensus) and Q2 revenues to about $706-$720 million ($700.6M consensus).

A funny thing happened this afternoon, but it won't be funny to the bulk of investors. Late this afternoon, the frustration and panic started setting in. You can blame a lot of it on many things, but the real fault may be the charts. The DJIA was off 165 points to 12,855.71 and the S&P 500 was off even worse, down 20.59 at 1,397.67.

The market sell-off was small early on but then reached certain sell levels that had been prior resistance levels on the way up. These numbers have been rounded for ease:
When the S&P 500 didn't hold right at 1,410.00, that added more pressure. Then, when 1,405.00 didn't hold, it added on another wave of sellers, and now 1,400 will act as a stead line of resistance, maybe beyond today. But it sure looks like we just lost the first cushion and moved out of that S&P up-trend after the 1,400 level was violated.

Was there news? Sure. Word came today that one of the suicide bombers in Iraq had been a Guantanamo POW; we also got word of an earthquake in Japan. But that darned dinosaur water, or black gold, just won't quit rising even when you get news that looks like it could fall. Today's higher oil inventories didn't do anything to stop the climb in oil prices and they rose $1.68 to $123.51 per barrel .

Many of these market whips come and go, but it sure looks like the pessimists and the bears just got the upper hand over the bulls today.

Panera Bread Company (NASDAQ: PNRA) owns and franchises some 1,200 bakery-cafes, operating under the Panera Bread and Saint Louis Bread banners in 40 states. The stores offer specialty baked goods, made-to-order sandwiches, soups, salads and custom roasted coffees. They also provide free WiFi Internet access. Starbucks Corporation (NASDAQ: SBUX) is a major competitor.

The company pleased investors last week, when it reported Q1 EPS of 47 cents and revenues of $305 million. Analysts had been expecting 39 cents and $302.8 million. Management also guided Q2 EPS to 40-44 cents (39 cent consensus) and FY08 EPS to $2.00-$2.11 ($2.02 consensus). The press release noted, "Company-owned comparable stores sales growth is targeted at 4% to 5% for the year, with approximately 5% of retail pricing expected."

Verizon Communications (NYSE: VZ) shares are falling after competitor Sprint Nextel (NYSE: S) announced it will collaborate with Clearwire (NASDAQ: CLWR) to form a $14.55 billion communications company. The new company will be named Clearwire, and will establish a mobile network based on the emerging WiMAX standard, which VZ has declined to adopt. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on VZ.

After hitting a one-year high of $46.24 in October, the stock hit a one-year low of $33.00 in March. This morning, VZ opened at $38.47. So far today the stock has hit a low of $38.09 and a high of $38.72. As of 12:10, VZ is trading at $38.67, down $0.22 (-0.6%). The chart for VZlooks bullish and steady, while S&P gives the stock a positive 4 STARS (out of 5) buy rating.

For a bearish hedged play on this stock, I would consider a July bear-call credit spread above the $42.50 range. A bear-call credit spread is an options position that combines the purchase and sale of call 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 ten weeks as long as VZ is below $42.50 at July expiration. Verizon would have to rise by more than 9% before we would start to lose money. Learn more about this type of trade here.

British Petroleum (NYSE: BP) shares are falling today after the US Energy Department reported that domestic gasoline inventories rose unexpectedly last week and crude-oil stockpiles gained more than expected. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on BP.

After hitting a one-year high of $79.77 in November, the stock hit a one-year low of $57.85 in January. This morning, BP opened at $72.73. So far today the stock has hit a low of $72.17 and a high of $72.82. As of 12:00, BP is trading at $72.30, down $0.54 (-0.7%). The chart for BP looks bullish and steady, while S&P gives the stock its highest 5 Stars (out of 5) strong buy rating.

For a bearish hedged play on this stock, I would consider a July bear-call credit spread above the $80 range. A bear-call credit spread is an options position that combines the purchase and sale of call 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 6.4% return in two and a half months as long as BP is below $80 at July expiration. BP would have to rise by more than 10% before we would start to lose money. Learn more about this type of trade here.

Walt Disney Co. (NYSE: DIS) shares are trading about $1 higher after the company reported a second-quarter profit of $1.13 billion or $0.58 per share, beating analysts' estimates of $0.51 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 DIS.

After hitting a one-year high of $36.79 last May, the stock hit a one-year low of $26.30 in January. DIS opened this morning at $34.21. So far today the stock has hit a low of $34.05 and a high of $34.95. As of 11:45, DIS is trading at $34.92, up $1.19 (3.5%). The chart for DIS looks neutral and deteriorating slightly, 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 a July bull-put credit spread below the $30 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 two and a half months as long as DIS is above $30 at July expiration. Disney would have to fall by more than 14% before we would start to lose money. Learn more about this type of trade here.