Barclay's (NYSE: BCS) stock is falling today after the company announced a 1.1B GBP loss for Q1, including a 1.7B GBP charge, mostly related to write-downs of credit market losses. The company also did not announce rights issue to raise capital, which has surprised analysts. 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 BCS.

After hitting a one-year high of $61.55 in July, the stock hit a one-year low of $31.31 in March. This morning, BCS opened at $32.44. So far today the stock has hit a low of $32.35 and a high of $33.17. As of 12:25, BCS is trading at $32.97, down 0.34 (-1.0%). The chart for BCS looks bullish but deteriorating, 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 $40 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 four months as long as BCS is below $40 at September expiration. Barclays would have to rise by more than 21% before we would start to lose money. Learn more about this type of trade here.

BCS hasn't been above $40 by more than a little bit since January and has shown resistance around $37 recently. This trade could be risky if the financial markets execute a turnaround, but even if that happens, this position could be protected by resistance BCS might find at $40, where the stock has topped out twice int he 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 BCS.

NVIDIA (NASDAQ: NVDA) shares are trading higher today after the company reported a first-quarter profit of $176.8 million, or 30 cents per share. Although the adjusted profit of 36 cents per share missed analyst estimates of 38 cents per share, a few analysts upgraded NVDA saying margin growth and new products should improve NVDA's prospects through the year. 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 NVDA.

After hitting a one-year high of $39.67 in October, the stock hit a one-year low of $17.31 in March. NVDA opened this morning at $22.01. So far today the stock has hit a low of $21.97 and a high of $23.39. As of 12:00, NVDA is trading at $23.38, up 1.43 (6.5%). The chart for NVDA looks bullish but deteriorating slightly, 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 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 a 9.9% return in just five and a half months as long as NVDA is above $17.50 at September expiration. NVIDIA would have to fall by more than 25% before we would start to lose money. Learn more about this type of trade here.

NVDA hasn't been below $17.50 by more than a few cents at all in the past year and has shown support around $22 recently. This trade could be risky if the company's next earnings (due out in mid-August) disappoint, but even if that happens, this position could be protected by the support the stock might find from its 50-day moving average, which is currently around $20.

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 NVDA.

Allstate Corp. (NYSE: ALL) opened at $60.40. So far today the stock has hit a low of $59.00 and a high of $60.49. As of 11:00 this morning, ALL is trading at $59.67, down $0.89 (-1.5%).

After hitting a one year high of $66.14 in December, the stock has been trading slightly lower over the past six months, with support just below $60. The stock is testing that support today, as shares fall in the wake of a weaker-than-expected earnings report. The company reported earnings per share of $1.76, a tick below the $1.80 expected by Wall Street analysts, citing declining homeowner premiums for the fall. Technical indicators for ALL are bearish and steady, while S&P gives the stock a very positive 5 STARS (out of 5) strong buy rating.

For a bearish hedged play on this stock, I would consider an October bear-call credit spread above the $65 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk and leverage returns. For this particular trade, we will make a 13.6% return in just 3 months as long as ALL is below $65 at October expiration. ALL would have to rise by 8% before we would start to lose money.

ALL has never been above $65 except for a few days in December and has shown resistance around $62 recently. This trade could be risky if the company's earnings turn out to be better than they seem after closer study, but even if that happens, this stock could have trouble getting over $64, where it topped out in April and May.

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 ALL.

Abbott Laboratories (NYSE: ABT) opened at $54.00. So far today the stock has hit a low of $53.15 and a high of $54.97. As of 10:45, ABT is trading at $54.00, up $0.61 (1.1%).

After hitting a one-year high of $59.50 in May, the stock has dipped down to previous support levels right around $54. Shares are gaining today after the company's Q2 earnings of 0.69 per share surpassed expectations of 0.68. Technical indicators for ABT are 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 an November bull-put credit spread below the $47.50 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk and leverage returns. For this particular trade, we will make a 8.7% return in just 4 months as long as ABT is above $47.50 at November expiration. ABT would have to fall by more than 12% before we would start to lose money.

ABT hasn't been below $47.50 November and has shown support around $53 recently. This trade could be risky if the company's next earnings (due out in mid-October) are not as well-received. Even if that happens, it looks like this position could be protected the strong support the stock found just around $53, plus its 200 day moving average, which is currently at $52 and rising.

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

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