LG Display (LPL - option chain) shares are rising on reports that the company may raise prices on some of its LCD panels due to strong demand and tighter supply after the recent earthquake in Taiwan. 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 LPL.

LPL opened this morning at $15.86. So far today the stock has hit a low of $15.75 and a high of $15.94. As of 11:50, LPL is trading at $15.92 up 39 cents (2.5%). The chart for LPL looks neutral and S&P gives LPL a neutral 3 STARS (out of 5) hold ranking.

Royal Philips Electronics, the largest consumer electronics maker in Europe, reported this morning a decline in its first-quarter profit. As another sign that the slumping U.S. economy is hurting companies overseas, Philips posted a bigger-than-expected 28% fall in its core profit after weak North America television sales offset gains in its health care and lighting businesses.

The company's first-quarter net income was 219 million euros ($347 million), lower than 875 million euros reported last year when Philips benefited from higher gains on the sale of stakes. For its overall sales, the world's largest maker of lighting posted a growth of only 1% to 5.96 billion euros ($9.44 billion), while comparable sales saw a decline of 9% in North America, hurt by weak results from the company's TV business.

The company's quarterly earnings figure included a gain of 83 million euros on the partial sale of its shareholding in LG Display Co. Ltd. (NYSE: LPL), Philips stated, while, the prior-year quarter results included a net gain of 733 million euros from the partial sale of the shareholding in Taiwan Semiconductor Manufacturing Co. (NYSE: TSM).

LG Display Co., Ltd. (NYSE: LPL) stock is falling this morning on news that Philips sold about $1 billion worth of its stake in LPL. The company sold the shares at a discount of 4.8 to 8.1 percent, according to news reports, and the deal will reduce Philips stake in the company to 13.5 percent from 19.9 percent. 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 LPL.

After hitting a one-year low of $15.87 last March, the stock hit a one-year high of $31.29 in November. This morning, LPL opened at $23.22. So far today the stock has hit a low of $21.88 and a high of $23.44. As of 1:10, LPL is trading at $22.44, down $2.14 (-8.7%). The chart for LPL 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 an April bear-call credit spread above the $25 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 12.4% return in one and a half months as long as LPL is below $25 at April expiration. LG Display would have to rise by more than 11% before we would start to lose money.