AstraZeneca (NYSE: AZN - option chain) shares are rising today after the company said its experimental heart pill, Brilinta, was more effective at preventing heart attacks and strokes in a large clinical trial than Plavix, a drug made by competitors Sanofi-Aventis (NYSE: SNY) and Bristol-Myers Squibb (NYSE: BMY). 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 AZN.

AZN opened this morning at $38.16. So far today the stock has hit a low of $37.83 and at 11:25 is trading at the days high of $38.21, up 2.07 (5.7%). The chart for AZN looks neutral and S&P gives AZN a neutral 3 STARS (out of 5) hold ranking.

Cephalon (NASDAQ: CEPH - option chain) shares are headed higher today after the company reported its positive results from a phase two clinical trial of its bipolar I disorder drug NUVIGIL. The company plans to advance the drug to phase three trials, and hopes to launch the drug in the third-quarter of 2009. 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 CEPH.

CEPH opened this morning at $66.50. So far today the stock has hit a low of $65.66 and a high of $68.13. As of 12:00, CEPH is trading at $67.51, up 4.32 (6.8%). The chart for CEPH looks bullish and S&P gives CEPH a positive 4 STARS (out of 5) buy ranking.

Amgen Inc. (NASDAQ: AMGN) reported Friday after market close positive initial results from its tests of denosumab, a drug designed to increase bone density in breast cancer patients. AMGN stock is down this morning, however, as analysts await larger trials of the drug as the company has come under fire due to safety, reimbursement and label concerns about its anemia drug franchise. There are some indications of a higher rate of infections with AMGN's drug, but due to the relatively small sample size it would be tough to draw conclusions. 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 AMGN.

After hitting a one-year high of $76.95 in January, the stock hit a one-year low of $48.25 last week, which it has broken this morning. This morning, AMGN opened at $48.02. So far today the stock has hit a low of $47.67 and a high of $48.13. As of 11:30, AMGN is trading at $47.92, down $0.48 (-1.0%). The chart for AMGN looks bearish 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 an April bear-call credit spread above the $60 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 four months as long as AMGN is below $60 at April expiration. Amgen would have to rise by more than 25% before we would start to lose money.