After hitting a one-year high of $48.77 in August, the stock hit a one-year low of $32.31 earlier this month. HSY opened this morning at $35.55. So far today the stock has hit a low of $35.32 and a high of $36.81. As of 1:00, HSY is trading at $36.40, up $1.45 (4.1%). The chart for HSY looks bearish and improving, while S&P gives the stock a bearish 1 Star (out of 5) Strong Sell rating.

For a bullish hedged play on this stock, I would consider a November bull-put credit spread below the $30 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 four months as long as HSY is above $30 at November expiration. Hershey would have to fall by more than 17% before we would start to lose money. Learn more about this type of trade here.

Continue reading Hershey (HSY) rises on strong Q2 earnings

Hershey (HSY) rises on strong Q2 earnings originally appeared on BloggingStocks on Wed, 23 Jul 2008 14:12:00 EST. Please see our terms for use of feeds.