Sony Corp (NYSE: SNE) CEO Sir Howard Stringer said in a recent interview that despite its troubles in generating sales in its first year, SNE's PlayStation 3 console should make a comeback as popular game titles like Grand Theft Auto IV hit the market. 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 SNE.

After hitting a one-year high of $57.92 last May, the stock hit a one-year low of $39.52 in April. SNE opened this morning at $50.81. So far today the stock has hit a low of $50.27 and a high of $50.81. As of 12:55, SNE is trading at $50.37, up 1.94 (4.0%). The chart for SNE 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 an October bull-put credit spread below the $40 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 months as long as SNE is above $40 at October expiration. Sony would have to fall by more than 33% before we would start to lose money. Learn more about this type of trade here.

SNE hasn't been below $40 by more than a few cents at all in the past year and has shown support around $48 recently. This trade could be risky if the company's earnings (due out in late July) disappoint, but even if that happens, this position could be protected by the support the stock might find around $40, where it bottomed out in April.

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 SNE.

Before the bell: Futures lower ahead of Fed's decision; data

Merck & Co. (NYSE: MRK) shares are gaining 1% in premarket trading after it posted a $1.6 billion loss in the fourth quarter due to large charges for its Vioxx litigation settlement and other items dragged down results. While Net loss amounted to 75 cents per share, fourth-quarter charges totaled $3.4 billion, or $1.55 per share. Excluding the one-time earnings, net income would have been 80 cents per share, beating the expected 74 cents earnings per share. Revenues were up 3% to $6.24 billion, slightly less than the estimated $6.3 billion. Merck also lowered its full-year 2008 forecast.

Boeing Co. (NYSE: BA) reported a fourth-quarter profit rise of 4% $1.03 billion, or $1.36 per share on higher commercial airplane deliveries and strong growth in defense earnings, beating Wall Street's expectations of $1.32 per share despite ongoing concerns over delays in its 787 Dreamliner program. Boeing also increased its guidance for 2008 earnings, citing productivity improvements.

Also reporting today: Kraft Foods (NASDAQ: KFT) is expected to post earnings of 44 cents a share in the fourth quarter. United Parcel Service Inc. (NYSE: UPS) is expected to report fourth-quarter earnings of $1.13 a share. Eastman Kodak Co. (NYSE: EK) is expected to report earnings of 52 cents a share in the fourth quarter. Kellogg Co. (NYSE: K) is expected to post earnings of 44 cents a share in the fourth quarter.