Allergan (AGN - option chain) shares are rising today after the company announced FDA approval of Allergan's Botox for use as a treatment for chronic Migraine headaches on Friday after the close of trading. This opens an entirely new market for that drug, which was almost exclusively used for cosmetic purposes. 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 AGN.

AGN opened this morning at $71.97. So far today the stock has hit a low of $71.14 and a high of $72.56. As of 12:10, AGN is trading at $72.43 up $3.57 (5.2%). The chart for AGN looks bullish and S&P gives AGN a positive 4 STARS (out of 5) buy ranking.

As the opening bell sounded and stocks got off to a sluggish start, I decided to take a look for stocks that got off to a fast start. One of those stocks is Botox-maker Allergan (AGN). In early trading, the pharmaceutical firm was more than a percentage point higher, so I took to digging to find out why.

The biggest news I found for Allergan was that it entered into an Amended and Restated License, Development and Marketing Agreement with Inspire Pharmaceuticals. The agreement deals with terms related to the Prolacria 2% development program and Inspire's right to receive revenues from Allergan relating to net sales of Restasis and any other human opthalmic formulations of cyclosporine owned or controlled by Allergan. Simply put, Inspire will receive revenues on net sales of Restasis and any related cyclosporine-based medicines.

Drug manufacturer Allergan, Inc. (AGN) will be reporting its second quarter results on Monday, with analysts expecting to see an 8% earnings increase from the same period last year.

Analysts have forecast earnings of $0.81 for the quarter, versus $0.75 during the same period last year.

Allergan has managed to outpace analyst estimates for each of the past six quarters, and has not failed to at least match estimates since the first quarter of 2007.

The choppy/consolidating (or perhaps worse) market conditions sometimes give the impression that growth plays do not exist, but that is not the case, and one growth company worth reviewing is Allergan.

Allergan, Inc. (NYSE: AGN) is a leading producer of ophthalmic, neuromuscular and skin care pharmaceuticals, and, via its March 2006 acquisition of Inamed Corp., aesthetic products.

Analysts see 10-13% revenue growth in 2008, but with U.S. sales growth dampened by the slow-growth U.S. economy. International markets accounted for about 34% of sales.

Concerning Botox, so far there has been no slowdown for therapeutic of cosmetic use, but the latter may record slower growth if U.S. discretionary purchases decline, in the quarters ahead.

Allergan Inc. (NYSE: AGN) opened at $123.64. So far today the stock has hit a low of $123.40 and a high of $124.42. As of 12:20, AGN is trading at $124.09, up $0.45 (0.4%).

After a dip that began in late 2006, this stock found support in March and rebounded nicely, climbing to a new all-time high today. Jim Cramer called the Botox maker the "single best baby boomer play there is," shaking off concern that Medicis (NYSE: MRX) will come up with a cheap alternative that will hurt the Botox biz. Cramer believes Allergan's market is strong and will keep the stock going higher. Recent technical indicators for AGN have been bullish and steady, 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 $105 range. AGN hasn't been below $105 since July and has shown support around $117 recently. This trade could be risky if one of the company's products gets in trouble with the FDA, but even if that happens, this position could be protected by the strong historical support around $106.

Brent Archer is an options analyst and writer at Investors Observer. Do you have any deadwood in your portfolio? Check out the 18 Warning Signs That Tell You When To Dump A Stock. 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 AGN or MRX.

Jim Cramer, never one to rest on a single industry segment, discussed the quest for youthfulness tonight on his ever-popular MAD MONEY show.

If you want your body to look like a teenager's but your bank balance to scream "old fogey," Cramer advises that you avoid Bare Escentuals, Inc. (NASDAQ:BARE). He calls it a fad that isn't going anywhere, and says if you own it you should "ring the register." It was spun off by an LBO firm, but now it's too late; the company won't make you money. Cramer had regrets over this one: he didn't tell a caller on Friday to sell, and wished he had.

Better options if you want to capitalize on America's quest for eternal youth? Cramer likes Allergan, Inc. (NYSE:AGN) for its Botox and Medicis Pharmaceutical Corporation (NYSE:MRX) for its competing product. He counselled against the big, luxury names in the space: Avon Products Group (AVP), The Estee Lauder Co. (NYSE:EL) or Revlon, Inc. (NYSE:REV). Cosmetic companies are unreliable to Cramer.

Cramer did say International Flavors & Fragrances Inc. (NYSE:IFF) is a good alternative, even though it is close to a 52-week high. He thinks the company is much better with scents and steady end markets. Soon it will split into two businesses, he says, as it creates sweet ingredients that it sells to large companies like P&G. He said IFF only trades at 16x forward earnings and it has consistent 10% earnings growth. The best pick of the bunch? IFF, Cramer says.

[Photo Michael McCauslin]