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Fast Action: Playing Apple Ahead of iPad

Wednesday, 17 Mar 2010 | 5:41 PM ET

How should you place your bets on Apple ahead of the iPad release?

Mike Khouw of Cantor Fitzgerald suggests playing it with options!

Here’s the trade:
With Apple at $224
Buy July 220 Call @ $18.25
Sell July 230 Call @ $13.25

Profits Above $225
Profits Capped At $230
Losses Below $220

Want to learn more about this trade? Watch the video now!

Fast Action: Apple for $5?
Using options to place your bets on a stock that could be headed to $300, with Mike Khouw, Cantor Fitzgerald.




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Trader disclosure: On March 17th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Finerman's Firm Is Short (SPY), (IWM), (MDY), (IJR), (SPY), (USO); Finerman's Firm Owns (IYR) Puts; Finerman's Firm Is Long S&P Puts; Finerman Owns (AAPL); Finerman's Firm Owns (BAC), (BAC) Leaps; Finerman Owns (BAC), (BAC) Preferred; Finerman's Firm And Finerman Own (GOOG); Finerman's Firm And Finerman Own (JPM); Finerman's Firm And Finerman Own (WFC) Preferred; Finerman's Firm Owns (TJX); Seymour Owns (AAPL), (BAC), (BX), (F), (GE), (TSO), (XOM), (SSL); Najarian Owns (AA) Calls; Najarian Owns (BAC) Call Spread; Najarian Owns (C); Najarian Owns (F) Calls; Najarian Owns (GE) Calls; Najarian Owns (TSO) Calls; Najarian Owns (YHOO) Call Spread; Terranova Owns (QCOM) April Calls; Terranova Owns (TER); Terranova Is Short (AMR); Terranova Is Short (UAUA); Terranova Is Short (CAL); Terranova Is Long Dec. 2010 Crude Oil Futures; Edwards Owns (AAPL) For Clients; Edwards Owns (BAC) For Clients; Edwards Owns (CVX) For Clients; Edwards Owns (GS) For Clients; Edwards Owns (GE) For Clients; Edwards Owns (JPM) For Clients; Edwards Owns (MSFT) For Clients; Edwards Owns (NKE) For Clients; Edwards Owns (PG) For Clients; Edwards Owns (QQQQ) For Clients; Edwards Owns (SPY) For Clients; Edwards Owns (SNE) For Clients; Edwards Owns (WFC) For Clients; Edwards Owns (XOM) For Clients

GE Is The Parent Company Of CNBC

For Joe Terranova
Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (GOK)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLI)

For Michael Pento
Pento And His Clients Own (SQM), (EGO), (IAG), (PWE)

For Mike Khouw
Cantor Fitzgerald & Co. Is A Market Maker In (AAPL)


CNBC.com with wires

  Price   Change %Change
AAPL
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Halftime Report

  • Jay Yarow, The Business Insider, and Steve Milunovich, UBS, discuss whether Tim Cook is to blame for Apple's drop in growth. I think it's pretty clear they missed the big phone market and overestimated the success of the plastic 5C phone, says Milunovich.

  • CNBC's Eamon Javers reports on Bill Ackman's stake in Allergan. Javers says this is a classic case of insider trading that is not against the rules.

  • FMHR trader Josh Brown thinks Dunkin' Brands looks fantastic technically, while Mike Murphy says investors are questioning the company's massive expansion plans.