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Phillip Morris International (NYSE: PM - option chain) shares are relatively flat today in the face of a bearish market as the company announced it will raise its regular quarterly dividend to 54 cents. As long as they pay that dividend quarterly, then this makes a tidy 4% yield.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 PM that can take advantage of that dividend.

PM opened this morning at $53.76. So far today the stock has hit a low of $53.66 and a high of $54.46. As of 12:35, PM is trading at $53.96, up 4 cents(0.1%). The chart for PM looks bullish and S&P gives PM a positive 4 STARS (out of 5) buy ranking.

For a bullish hedged play on this stock, I would consider a March covered call at the $60 level. A covered call is an options position that combines the purchase of stock with the 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 an 8.4% return in 7 months if PM is above $60 at March expiration. But unlike our normal credit spread trades, that is not the goal here. This position turns out strictly better than buying and holding the stock if it is below $61.25 at March expiration, and it makes a reasonable return in the unlikely event that the stock rises to that level. Plus, you can probably expect to catch at least two dividend payments over that time. We get about 2% of downside protection on this pretty stable stock by using a covered call. Learn more about this type of trade here.

PM has shown support just below $54 recently.

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 PM.

Mobile Telesystems (NASDAQ: MBT - option chain) shares are soaring higher today after the company announced its board approved buying back 11.1 billion rubles ($452 million) worth of shares. 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 MBT.

MBT opened this morning at $68.18. So far today the stock has hit a low of $67.55 and a high of $70.54. As of 12:35, MBT is trading at $69.22, up $3.08 (4.7%). The chart for MBT looks neutral and S&P gives MBT a neutral 3 STARS (out of 5) hold ranking.

For a bullish hedged play on this stock, I would consider a September 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 4.2% return in just three weeks as long as MBT is above $60 at September expiration. MBT would have to fall by more than 13% before we would start to lose money. Learn more about this type of trade here.

MBT hasn't been below $60 at all in the past year and has shown support around $64 recently.

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 MBT.

Toll Brothers (NYSE: TOL - option chain) shares are soaring higher today after weekly mortgage data came out this morning that showed applications rose last week. This after yesterday's mixed numbers for new home sales caused at least one celebrity stock analyst to call a bottom in housing. 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 TOL.

TOL opened this morning at $22.42. So far today the stock has hit a low of $22.33 and a high of $23.43. As of 12:15, TOL is trading at $23.43, up $1.10 (4.5%). The chart for TOL looks bullish and S&P gives TOL a positive 4 STARS (out of 5) buy ranking.

For a bullish hedged play on this stock, I would consider an October 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 8.7% return in just seven weeks as long as TOL is above $17.50 at October expiration. Toll would have to fall by more than 25% before we would start to lose money. Learn more about this type of trade here.

Big Lots (NYSE: BIG - option chain) shares are diving today despite reporting an 11% increase in second-quarter profit. The company posted earnings of 32 cents per share on sales of $1.1 billion, while analysts expected 27 cents per share on revenue of $1.1 billion. However, it warned that same store sales may not grow too much in the 3rd and 4th quarters. 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 BIG.

This morning, BIG opened at $32.56. So far today the stock has hit a low of $30.21 and a high of $32.60. As of 12:45, BIG is trading at $31.69, down $1.37 (-4.1%). The chart for BIG looks neutral and S&P gives BIG a neutral 3 STARS (out of 5) hold ranking.

For a bearish hedged play on this stock, I would consider a September bear-call credit spread above the $35 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 an 8.7% return in 4 weeks as long as BIG is below $35 at September expiration. Big Lots would have to rise by more than 11% before we would start to lose money. Learn more about this type of trade here.

Brinker International (NYSE: EAT - option chain) shares are headed lower today. Last week, an analyst expressed concerns about potential weakness in the casual dining sector due to families that may have stayed home to watch Olympic coverage rather than going out for dinner. Today, there is some weakness throughout the sector, on stocks like Darden (NYSE: DRI) and Cheescake Factory (NASDAQ: CAKE) as well. 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 EAT.

This morning, EAT opened at $19.34. So far today the stock has hit a low of $18.87 and a high of $19.41. As of 12:15, EAT is trading at $18.95, down 62 cents (-3.2%). The chart for EAT looks neutral and S&P gives EAT a neutral 3 STARS (out of 5) hold ranking.

For a bearish hedged play on this stock, I would consider an October bear-call credit spread above the $22.50 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 an 8.7% return in two months as long as EAT is below $22.50 at October expiration. Brinker would have to rise by more than 18% before we would start to lose money. Learn more about this type of trade here.

EAT hasn't been above $22.50 since May and has shown resistance around $21 recently.

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 EAT, DRI, or CAKE.

Foot Locker (NYSE: FL - option chain) shares are soaring higher today after the company announced yesterday evening that it earned a second-quarter profit of $18 million, or 11 cents per share and well above estimates of 3 cents. Other retail earnings this morning were a mixed bag, as Gap (NYSE: GPS) and Jones Apparel (NYSE: JNY) are rising while Pacific Sunwear (NASDAQ: PSUN) is tanking. This makes me think that the retail sector may not trade as a block for the next few months, but rather on the individual merits of each stock. If you think that FL 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 the stock.

FL opened this morning at $16.40. So far today the stock has hit a low of $14.93 and a high of $16.50. As of 12:05, FL is trading at $15.57, up 0.29 (1.9%). The chart for FL looks neutral and S&P gives FL a neutral 3 STARS (out of 5) hold ranking.

For a bullish hedged play on this stock, I would consider a January bull-put credit spread below the $10 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 five months as long as FL is above $10 at January expiration. Foot Locker would have to fall by more than 35% before we would start to lose money. Learn more about this type of trade here.

FL hasn't been below $9 at all and hasn't been below $10 for more than a few days in the past year. It has shown support around $14 recently.

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 FL.

Burger King (NYSE: BKC - option chain) shares are falling today after posting a fourth-quarter profit of $51 million, or 37 cents per share, beating analysts' estimates of 34 cents per share. However, BKC shares are falling this morning after the company reported its total restaurant margins decreased to 13.1 percent in the quarter, hurt largely by higher commodity costs like more expensive beef and chicken. 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 BKC or other similar stocks like MCD or YUM.

This morning, BKC opened at $27.29. So far today the stock has hit a low of $25.17 and a high of $27.29. As of 12:21, BKC is trading at $26.03, down $1.42 (-5.2%). The chart for BKC looks neutral and S&P gives BKC a neutral 3 STARS (out of 5) hold ranking.

For a bearish hedged play on this stock, I would consider an October bear-call credit spread above the $30 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 BKC is below $30 at October expiration. Burger King would have to rise by more than 15% before we would start to lose money. Learn more about this type of trade here.

BKC hasn't been above $30 for more than a few days out of the past year and has shown resistance around $29 recently.

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 BKC.

BJ's Wholesale Club (NYSE: BJ - option chain) shares are falling today despite reporting second-quarter profit that beat estimates and announcing a share buyback. This is possibly because discretionary item spending slowed. 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 BJ or similar companies like COST.

This morning, BJ opened at $38.60. So far today the stock has hit a low of $37.11 and a high of $38.98. As of 12:45, BJ is trading at $37.99, down $2.69 (-6.6%). The chart for BJ looks neutral and S&P gives BJ a neutral 3 STARS (out of 5) hold ranking.

For a bearish hedged play on this stock, I would consider an October bear-call credit spread above the $45 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 two months as long as BJ is below $45 at October expiration. BJ's would have to rise by more than 18% before we would start to lose money.

BJ hasn't been above $45 at all in the past year and has shown resistance around $43 recently.

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

Saks (NYSE: SKS - option chain) shares are falling today after the company reported second-quarter losses of $31.7 million, or $0.23 a share, this morning, less than analysts' estimates of -0.17. The company also forecast lower operating margins. If high-end retailers are hurting, then there is definitely some behavior of the average American consumer that is changing as well. 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 SKS.

This morning, SKS opened at $10.60. So far today the stock has hit a low of $9.60 and a high of $10.61. As of 12:10, SKS is trading at $9.92, down $1.30 (-11.6%). The chart for SKS looks neutral while S&P gives SKS a positive 4 STARS (out of 5) buy ranking.

For a bearish hedged play on this stock, I would consider a November bear-call credit spread above the $12.50 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 an 11.1% return in three months as long as SKS is below $12.50 at November expiration. Saks would have to rise by more than 26% before we would start to lose money. Learn more about this type of trade here.

SKS hasn't been above $120 since late June and has shown resistance around $12 recently.

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 SKS.

Broadcom (NASDAQ: BRCM - option chain) shares are moving higher today after an article in Barron's over the weekend said the stock could rise as much as 40 percent as the chipmaker enters the market for smartphones. 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 BRCM.

BRCM opened this morning at $28.23. So far today the stock has hit a low of $27.76 and a high of $28.39. As of 12:20, BRCM is trading at $27.86, up 40 cents(1.5%). The chart for BRCM looks bullish and S&P gives BRCM a positive 4 STARS (out of 5) buy ranking.

For a bullish hedged play on this stock, I would consider a November 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 13.6% return in just three months as long as BRCM is above $20 at November expiration. Broadcom would have to fall by more than 27% before we would start to lose money. Learn more about this type of trade here.

BRCM hasn't been below $20 since April and has shown support around $23 recently.

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 BRCM.

SunPower (NASDAQ: SPWR - option chain) shares are soaring higher today after Pacific Gas and Electric Co. said it has chosen SPWR to supply up to 800 megawatts of renewable energy. On the news, an analyst at Merrill Lynch also upgraded SPWR to "Buy" from "Hold." 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 SPWR.

SPWR opened this morning at $87.64. So far today the stock has hit a low of $87.57 and a high of $93.93. As of 12:55, SPWR is trading at $93.26, up $14.69 (18.7%). The chart for SPWR looks neutral and S&P gives SPWR a 3 STARS (out of 5) hold ranking.

For a bullish hedged play on this stock, I would consider a December 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 willstill leverage nice returns. For this particular trade, we will make an 11.1% return in just four months as long as SPWR is above $55 at December expiration. Sunpower would have to fall by more than 40% before we would start to lose money. Learn more about this type of trade here.

SPWR hasn't been below $55 since March and has shown support around $71 recently. With the way the political climate is shaping up, it looks like some form of solar power should be here for quite a while.

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 SPWR.

Dr. Pepper Snapple Group (NYSE: DPS - option chain) shares are flying higher today after the company reported this morning earnings that beat expectations by 5 cents and set its full-year forecast about 3 cents higher than previous analyst estimates. Even if consumers are spending less, it seems that charging $1.50 for two liters of soda that cost only a few cents to produce is still a good business model. 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 DPS.

DPS opened this morning at $22.21. So far today the stock has hit a low of $22.12 and a high of $23.77. As of 12:45, DPS is trading at $22.94, up $1.28 (5.9%). The chart for DPS looks neutral, but improving.

For a bullish hedged play on this stock, I would consider a November 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 16.3% return in just three and a half months as long as DPS is above $20 at November expiration. DPS would have to fall by more than 12% before we would start to lose money. Learn more about this type of trade here.

Archer-Daniels Midland (NYSE: ADM - option chain) shares are rising today after the Department of Agriculture lifted its corn production estimates and lowered its corn price estimates. The news is good for ADM since the company is a huge consumer of corn. 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 ADM.

ADM opened this morning at $26.34. So far today the stock has hit a low of $26.04 and a high of $27.25. As of 12:30, ADM is trading at $27.09, up $0.75 (2.8%). The chart for ADM looks bullish and S&P gives ADM a positive 4 STARS (out of 5) buy ranking.

For a bullish hedged play on this stock, I would consider a December bull-put credit spread below the $22.50 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 22.0% return in just four months as long as HANS is above $22.50 at September expiration. ADM would have to fall by more than 16% before we would start to lose money. Learn more about this type of trade here.

SYSCO (NYSE: SYY - option chain) shares are soaring higher today after the company reported a fourth-quarter profit of $334.1 million, or 55 cents per share, beating analysts' estimates of 52 cents per share(see more of today's earnings news). It turns out that low-cost, bulk food products are still in high demand, especially at a time when consumers pocketbooks are feeling the pinch, so fancier fare may be out of the question. 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 SYY.

SYY opened this morning at $30.29. So far today the stock has hit a low of $29.50 and a high of $31.47. As of 12:30, SYY is trading at $31.21, up $1.34 (4.5%). The chart for SYY looks neutral and S&P gives SYY a neutral 3 STARS (out of 5) hold ranking.

For a bullish hedged play on this stock, I would consider a November bull-put credit spread below the $27.50 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 13.6% return in just three and a half months as long as SYY is above $27.50 at November expiration. SYSCO would have to fall by more than 11% before we would start to lose money.

SYY hasn't been below $27.50 for more than a few days in the past year and has shown support around $28.50 recently.

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

Hansen Natural (NASDAQ: HANS - option chain) shares are soaring higher today after the company reported yesterday evening its second quarter profit jumped to 31 percent to $50.2 million on sales of its Monster energy drink. Despite missing estimates by a penny, the growth numbers and decreasing operational expenses are encouraging investors. 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 HANS.

HANS opened this morning at $21.43. So far today the stock has hit a low of $20.67 and a high of $23.42. As of 12:55, HANS is trading at $23.42, up 1.77 (8.2%). The chart for HANS looks bearish and steady.

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 13.6% return in just six weeks as long as HANS is above $17.50 at September expiration. Hansen would have to fall by more than 25% before we would start to lose money. Learn more about this type of trade here.

HANS hasn't been below $20 at all in the past year and has shown support around $21.50 recently.

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 HANS.