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UPDATE: Trading Apple Ahead of Wednesday's Mystery Event

Tuesday, 31 Aug 2010 | 5:27 PM ET

Shrouded in mystery, Apple won't officially say what's in store at a mystery press conference Wednesday, but the technology giant is rumored to be introducing a new iPod as well as a successor to Apple TV.

(The widely followed Apple analyst Gene Munster of Piper Jaffray relayed to Fast Money what his sources are telling him. Click here to go to Mystery Apple Event: Secrets Revealed!)

How should you trade it?

In a market where almost everything is struggling, Apple's stock continues to do great, said Pete Najarian, co-founder of optionMONSTER.com on the Halftime Report. Mac sales were up and growth last quarter was incredible.

With Apple stuck trading around $240 he thinks a new iPod or Apple TV could move the needle.

Take Your Position: Abercrombie Upgrade
John Morris, a senior retail analyst at BMO Capital Markets, tells the Fast Money traders why he's upgrading Abercrombie & Fitch.

It's the iPhone or iPad that typically moves the needle not iPod, countered Joe Terranova, chief market strategist of Virtus Investment Partners. However when Terranova looks out into Q4 he expects strong demand for both gadgets.

Turning attention to options action, Najarian has spotted strong volumes in Apple 250 calls and they expire on Friday. That activity illustrates how excited people are in anticipation of the announcement and the upside they expect, he said.

And in the past he's also suggested playing Apple downstream with long positions in F5 , Riverbed or Akamai.



Gene Munster of Piper Jaffray told us on August 25th, "there are times to be more optimistic on Apple and times to be less optimistic. I think there are more reasons to be optimistic on this stock right now. Not only does the stock typically gain 12% in the month of September, we’re going into the holiday season."

Apple Event Preview
A look at what Apple plans to unveil, with Colin Gillis, BCG Partners.

Tim Seymour felt a little differently.

"I think Apple is stuck in a range between $230 - $260, he said. "Ontop of that I think the consumer is challenged. That’s how I’d trade it."

Meanwhile, BGC Partners has a $350 price target on Apple; that's 44 percent higher from current levels, noted CNBC's Simon Hobbs.

* Hear more from BCG analyst Colin Gillis. Watch the video now!


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Trader disclosure: On August 31st, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour owns (AAPL), (BAC), (EEM), (INTC), (POT); Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Grasso owns (ASTM), (BA), (BAC), (C), (CSCO), (JPM), (LPX), (MO), (MOT), (NDAQ), (PFE), (PRST); Terranova Owns (AXP), (GS), (IBM), (QCOM), (AAPL), (GOOG), (BRCM), (TER), (MSFT), (C), (MRVL), (BMO), (V), (POT), (OXY), (GLD), (SU), (FCX), (APA), (XBI)

For Joe Terranova
Terranova is chief market strategist of Virtus Investment Partners, LTD.
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For Steve Grasso;
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For Peter Schiff
Funds managed by Schiff own (POT)
Funds managed by Schiff own (BHP)

For David Levy
***No Disclosures***

For Colin Gillis
***No Disclosures***

For Farha Aslam
***No Disclosures***

For David Bank
RBC Capital Markets is currently providing Time Warner Inc. with non-investment banking securities-related services.

RBC Capital Markets has provided Time Warner Inc. with non-investment banking securities-related services in the past 12 months.

RBC Capital Markets is currently providing Comcast Corporation with non-securities services.

RBC Capital Markets is currently providing The Walt Disney Company with non-securities services.

RBC Capital Markets has provided The Walt Disney Company with non-securities services in the past 12 months.



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