When oil lost almost $3 a barrel, stock futures indicated a lower opening for today. Just shy of 5 AM, S&P 500, Down Jones, and Nasdaq 100 futures were all off 0.9%. The drop in oil to $64 a barrel has called into question any projections of a quick economic recovery -- as if high unemployment weren't enough. The Monday after any long weekend is hard, and this one's going to hurt.

The direction in which futures are pointing continues Thursday's equity declines in the United States, bringing the S&P 500 its third consecutive weekly loss. For the day, it lost 2.91%. The Dow Jones Industrial Average lost 2.63% of its value, with the Nasdaq Composite Index giving up 2.67%. Year-to-date, the DJIA is down 5.6%, the S&P 500 down 0.8%.

BP (NYSE: BP) shares are trading higher today after the weekly US inventory report indicated a drop in supplies, while industry analysts expected a slight increase. Crude prices pushed to $132 in response, and the average gasoline prices in the US are currently a record $3.80 per gallon. 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 BP.

After hitting a one-year high of $79.77 in November, the stock fell through the winter to hit its one-year low of $57.85 in January before starting to rise again. BP opened this morning at $76.24. So far today the stock has hit a low of $75.86 and a high of $76.78. As of 11:10, BP is trading at $76.66, up $1.73 (2.3%). The chart for BP 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 $60 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 five months as long as BP is above $60 at October expiration. BP would have to fall by more than 21% 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.

BP plc (NYSE: BP) opened at $71.30. So far today the stock has hit a low of $70.71 and a high of $71.30. As of 11:10, BP is trading at $70.86, up $0.75 (1.1%).

After hitting a one year high of $73.28 in August, the stock dipped to a year low of $58.62 in March before shooting up into the high $60s again in late spring. The stock has shown support around 66 over the past several months. Shares are rising this morning after the company announced plans to work with Associated British Foods PLC and DuPont (NYSE: DD) to develop a $400 million bioethanol plant in northern England as BP seeks alternative forms of energy generation. Recent technical indicators for the stock have been bullish with slight deterioration, while S&P gives BP a neutral 3 STARS (out of 5) hold rating.

For a bullish hedged play on this stock, I would consider an August bull-put credit spread below the $65 range. BP hasn't been below $65 since March and has shown support around $66 recently. This trade could be risky if crude oil futures take a nosedive, but even if that happens, our position could find support at $66, due to the stock's 200 day moving average, which is currently at $66 and rising..

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 BP or DD.