Nokia (NYSE: NOK) shares are trading higher today after the company announced it has completed its acquisition of Navteq, a provider of comprehensive digital map information. Nokia hopes the acquisition will help it expand its technology platform. 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 NOK.

After hitting a one-year high of $42.22 in November, the stock hit a one-year low of $23.58 last week. NOK opened this morning at $25.16. So far today the stock has hit a low of $25.16 and a high of $25.73. As of 11:55, NOK is trading at $25.59, up 0.70 (2.8%). The chart for NOK looks bearish and improving slightly, while S&P gives the stock a bullish 4 Stars (out of 5) Buy rating.

For a bullish hedged play on this stock, I would consider an August bull-put credit spread below the $23 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 an 11.1% return in just five weeks as long as NOK is above $23 at August expiration. Nokia would have to fall by more than 10% before we would start to lose money. Learn more about this type of trade here.

NOK hasn't been below $23.50 at all in the past year and has shown support around $23.50 recently. This trade could be risky if the company's earnings (due out on 7/17) disappoint, but even if that happens, this position could be protected by the fact that is has dropped sharply over much of the past year and expectations for earnings may be muted.

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 NOK.

Monsanto (NYSE: MON) shares are trading higher today after the company announced that it has finished its acquisition of Marmot, SA, which includes the Latina American seed company Semillas Cristiani Burkard. 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 MON.

After hitting a one-year low of $58.50 in August, the stock hit a one-year high of $145.80 in June. MON opened this morning at $119.50. So far today the stock has hit a low of $119.28 and a high of $124.09. As of 12:20, MON is trading at $122.94, up $5.40 (4.6%). The chart for MON looks bearish and steady, while S&P gives the stock its highest 5 Stars (out of 5) Strong Buy rating.

For a bullish hedged play on this stock, I would consider an August bull-put credit spread below the $95 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 6.2% return in just five weeks as long as MON is above $95 at August expiration. Monsanto would have to fall by more than 22% before we would start to lose money.

Bristol-Myers Squibb (NYSE: BMY) shares are trading higher today after a Bernstein analyst wrote that BMY might be a takeover candidate, one day after the company announced it has completed its $234.6 million acquisition of Kosan Biosciences. 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 BMY.

After hitting a one-year high of $32.35 in July, the stock hit a one-year low of $19.43 last week. BMY opened this morning at $20.06. So far today the stock has hit a low of $20.00 and a high of $20.60. As of 12:50, BMY is trading at $20.45, up 78 cents (4.0%). The chart for BMY looks bearish 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 a September bull-put credit spread below the $17.50 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 an 11.1% return in just three months as long as BMY is above $17.50 at September expiration. BMY would have to fall by more than 14% before we would start to lose money. Learn more about this type of trade here.

BMY hasn't been below $19.40 at all in the past year and has shown support around $19.50 recently. This trade could be risky if the company's earnings (due out on 7/24) disappoint, but even if that happens, this position could be protected by the support the stock might find from bargain hunters looking for defensive stocks.

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 BMY.

OptionsXpress (NASDAQ: OXPS) shares are trading higher today after the company announced it will acquire Open E Cry LLC for $18 million in cash and stock. Open E Cry is a high-volume futures broker. 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 OXPS.

After hitting a one-year high of $34.95 in December, the stock hit a one-year low of $18.55 in March. OXPS opened this morning at $22.57. So far today the stock has hit a low of $22.52 and a high of $23.46. As of 12:15, OXPS is trading at $23.19, up $0.62 (2.7%). The chart for OXPS looks bullish and steady, while S&P gives the stock a bullish 4 Stars (out of 5) Buy rating.

For a bullish hedged play on this stock, I would consider an August bull-put credit spread below the $20 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 two months as long as OXPS is above $20 at August expiration. OXPS would have to fall by more than 14% before we would start to lose money. Learn more about this type of trade here.

Oracle (NASDAQ: ORCL) shares are falling today after the company announced it has agreed to buy Skywire Software, a software business that helps insurers manage policy sales and processing. Terms of the deal were undisclosed. 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 ORCL.

After hitting a one-year low of $18.18 in February, the stock hit a one-year high of $23.57 earlier this month. This morning, ORCL opened at $22.31. So far today the stock has hit a low of $21.83 and a high of $22.41. As of 12:45, ORCL is trading at $21.90, down 0.20 (-0.9%). The chart for ORCL 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 September 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 7.5% return in three months as long as ORCL is below $25 at September expiration. Oracle would have to rise by more than 13% before we would start to lose money. Learn more about this type of trade here.

ORCL hasn't been above $23 at all in the past year and has shown resistance around $23.50 recently. This trade could be risky if the company's earnings (due out on 6/25) are a positive surprise, but even if that happens, this position could be protected by resistance ORCL might find around $23 where the stock topped out earlier this month.

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 ORCL.

Mosaic (NYSE: MOS) shares are trading higher today after the company announced it intends to sell its Saskferco Products Inc. unit, which makes nitrogen fertilizer and is based in Belle Plaine, Saskatchewan. 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 MOS.

After hitting a one-year low of $32.50 in August, the stock hit a one-year high of $163.25 on Wednesday. MOS opened this morning at $151.67. So far today the stock has hit a low of $147.46 and a high of $155.60. As of 12:20, MOS is trading at $153.25, up $2.00 (1.3%). The chart for MOS looks bullish and steady.

For a bullish hedged play on this stock, I would consider a September bull-put credit spread below the $90 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 three months as long as MOS is above $90 at October expiration. Mosaic would have to fall by more than 41% before we would start to lose money.

MOS hasn't been below $90 since January and has shown support around $115 recently. This trade could be risky if the company's earnings (due out 7/29) disappoint, but even if that happens, this position could be protected by the support the stock might find at its 200 day moving average, which is currently around $95 and rising.

Brent Archer is an options analyst and writer at Investors Observer. At publication time, Brent neither owns nor controls positions in MOS.

Staples (NASDAQ: SPLS) shares are falling today after the European Commission approved SPLS's $2.7 billion acquisition of Dutch office supply company Corporate Express NV. The transaction has already received regulatory approval in the U.S. and Canada. 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 SPLS.

After hitting a one-year low of $19.69 in November, the stock hit a one-year high of $25.85 on Monday. This morning, SPLS opened at $24.76. So far today the stock has hit a low of $24.44 and a high of $24.98. As of 11:00, SPLS is trading at $24.54, down $0.57 (-2.3%). The chart for SPLS looks bullish 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 a September bear-call credit spread above the $27.50 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 16.3% return in three months as long as SPLS is below $27.50 at September expiration. Staples would have to rise by more than 11% before we would start to lose money. Learn more about this type of trade here.

A joint announcement by Yahoo! (NASDAQ: YHOO) and Google Inc. (NYSE: GOOG) scheduled for 1:30 p.m. PDT today, after market close, has rumor-mongers wondering whether the two will be announcing a big deal. Yahoo! has been on the block for so long that even the slightest breeze of news has everyone guessing; this morning, Doug McIntyre wrote that short interest was increasing as pessimists pooh-poohed Carl Icahn's plans.

Michael Arrington at TechCrunch says his sources are insisting it's only a search partnership, a deal that would probably have far less impact on the fate of Yahoo! -- it may signal more things to come, but let's recall that a "global advertising partnership" deal between Google and Time Warner, Inc. (NYSE: TWX)'s AOL in December 2005, in which Google purchased 5% of the internet company, never (yet) materialized into the acquisition many expected.

No major news outlet has the story yet, and there is no announcement on Yahoo!'s investor relations page. After falling 80 cents today, the stock was rebounding quickly on the rumors, at $25.97 at 2:10 p.m.

Update 6:21 p.m.: Microsoft has pulled its $33 per share offer for Yahoo!, and Yahoo! has announced a search advertising partnership with Google. Yahoo!'s stock ended the day down $3.34, or 12.77%, at $22.81.

JPMorgan Chase (NYSE: JPM) shares are trading higher on news that shareholders of Bear Stearns Cos. (NYSE: BSC) have approved JPM's $2.2 billion buyout of the investment bank. JPM will buy BSC for about $10 a share. The deal is expected to become official tomorrow. 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 JPM.

After hitting a one-year high of $52.31 last May, the stock hit a one-year low of $36.01 in March. JPM opened this morning at $42.69. So far today the stock has hit a low of $42.29 and a high of $44.06. As of 12:15, JPM is trading at $43.79, up 0.93 (2.2%). The chart for JPM looks bullish and deteriorating, while S&P gives the stock its highest 5 Stars (out of 5) strong buy rating.

For a bullish hedged play on this stock, I would consider a July bull-put credit spread below the $37.50 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 11.1% return in just seven weeks as long as JPM is above $37.50 at July expiration. JPMorgan would have to fall by more than 14% before we would start to lose money. Learn more about this type of trade here.

JPM hasn't been below $7.50 at all in the past year except for a short time in March and has shown support around $42 recently. This trade could be risky if the financial sector suffers some more in the coming months, but even if that happens, that position could be protected by support the stock might find just above $40, where it bottomed out twice in the past two months.

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 JPM or BSC.

Ryder System (NYSE: R) shares are trading higher after the company announced it would acquire the assets of Miami-based truck leasing company Gator Leasing Inc. Ryder will get Gator Leasing's truck fleet of about 2,300 trucks and about 300 contract customers. 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 R.

After hitting a one-year high of $65.69 in April, the stock hit a one-year low of $38.95 in November. R opened this morning at $61.04. So far today the stock has hit a low of $60.43 and a high of $62.58. As of 3:15, R is trading at $62.14, up 1.53 (2.5%). The chart for R is bullish but slightly deteriorating while S&P gives R a positive 4 STARS (out of 5) buy rating.

For a bullish hedged play on this stock, if one were to invest in it, I would consider a May bull-put credit spread below the $55 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 leverages nice returns. For this particular trade, we will make a 4.2% return in just five weeks as long as R is above $55 at May expiration. Ryder would have to fall by more than 15% before we would start to lose money. Learn more about this type of trade here.

Cephalon Inc. (NASDAQ: CEPH) shares are trading higher today on news that Takeda Pharmaceutical, a Japanese firm, has agreed to buy Cephalon competitor Millennium Pharmaceuticals (NASDAQ: MLNM) for $25 a share. MLNM is trading up almost 50% to $24.45 currently, indicating that investors think this deal will most likely happen. 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.

After hitting a one-year high of $84.83 in June, the stock hit a one-year low of $56.20 in February. CEPH opened this morning at $64.94. So far today the stock has hit a low of $64.45 and a high of $66.18. As of 12:45, CEPH is trading at $65.27, up 1.05 (1.6%). The chart for CEPH is neutral and improving, while S&P gives the stock a bullish 4 Stars (out of 5) buy rating.

For a bullish hedged play on this stock, I would consider a May bull-put credit spread below the $55 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 7.5% return in just five weeks as long as CEPH is above $55 at May expiration. Cephalon would have to fall by more than 15% before we would start to lose money. Learn more about this type of trade here.

CEPH hasn't been below $56 at all in the past year and has shown support around $59 recently. This trade could be risky if the company's earnings (due out on 5/1) disappoint, but even if that happens, that position could be protected by support the stock might find between $55 and $60, where it bottomed out in the past two months.

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 CEPH or MLNM.

Just announced this morning, global drug manufacturer Novartis (NYSE: NVS) is offering to buy a minority stake in the world's largest eye-care firm, Alcon (NYSE: ACL), by buying the stake from food conglomerate Nestle (OTC: NSRGY).

Essentially, the deal is to happen in two parts. The first stage appears to be a purchase of a 25% stake in Alcon for around $11 billion. This purchase comes with an option to purchase an additional 52% stake for about $28 billion.

Novartis will pay $143.18 a share for the purchase of the 25% stake. The option to purchase the 52% stake will come at a fixed share price of $181 and can come between 2010 and 2011.

From a statement on Nestle's website, the food maker plans to use the proceeds to reduce debt and the cash will also "support opportunities for profitable growth in line with the group's nutrition, health and wellness orientation.''

Zack Miller is the managing editor of IsraelNewsletter.com and a former equity analyst for a leading multinational hedge fund.

Hewlett-Packard Co. (NYSE: HPQ) shares are trading higher today on news that HP is buying privately held and Australia-based Tower Software as part of the company's effort to increase its business software operations. Tower Software produces software for documents and records management. If you think that the company 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 HPQ.

After hitting a one-year high of $53.48 in November, the stock hit a one-year low of $39.99 in January. HPQ opened this morning at $46.11. So far today the stock has hit a low of $46.11 and a high of $47.46. As of 11:40, HPQ is trading at $47.42, up $1.76 (3.85%). The chart for HPQ looks neutral and improving, while S&P gives the stock a bullish 4 Stars (out of 5) buy rating.

For a bullish hedged play on this stock, I would consider a May 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 an 8.7% return in just 7 weeks as long as HPQ is above $40 at May expiration. Hewlett-Packard would have to fall by more than 15% before we would start to lose money.

Wachovia Corp. (NYSE: WB) shares are trading higher this morning, helped by JP Morgan Chase (NYSE: JPM)'s decision to quintuple its buyout offer for Bear Stearns (NYSE: BSC). Even though an analyst lowered his annual profit estimate on Wachovia to $2.65 per share from $3.25 per share, saying he expects the bank to write down more than $1.7 billion in the first quarter, the stock is rising as there is an increased sense that the worst may be over in the financial sector. If you think that the company 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 WB.

After hitting a one-year high of $56.90 in May, the stock hit a one-year low of $23.77 last week. WB opened this morning at $30.75. So far today the stock has hit a low of $30.65 and a high of $33.01. As of 12:35, WB is trading at $31.56, up $0.84 (2.7%). The chart for WB looks bearish 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 April bull-put credit spread below the $25 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. This particular trade will make an 8.7% return in just one month as long as WB is above $25 at April expiration. Wachovia would have to fall by more than 21% before we would start to lose money.
WB hasn't been below $25 for more than a few days in the past year and has shown support around $26 recently. This trade could be risky if the financial woes continue, but even if that happens, this position could be protected by the support the has found recently just above $26.

Brent Archer is an options analyst and writer at Investors Observer. At publication time, Brent neither owns nor controls positions in WB, JPM, or BSC.

Salesforce.com (NYSE: CRM) shares are higher today after a Piper Jaffray analyst reiterated his Buy rating and $70 price target on the stock, citing increased user satisfaction and the potential of higher revenues with the company's adoption of the AppExchange program. But the real excitement on the Street stems from rumors that the CRM has approached Oracle (NASDAQ: ORCL) with a $75 a share sale offer. If you think that the company 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 CRM.

After hitting one-year low of $37.24 in August, the stock hit a one-year high of $65.52 in December. CRM opened this morning at $53.06. So far today the stock has hit a low of $53.06 and a high of $55.90. As of 11:25, CRM is trading at $54.76, up $3.89 (7.7%). The chart for CRM looks bearish and steady, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.