Pros: Top Derivative Trades On Apple’s iPhone 5
On the belief that Apple isn't the only way to play the buzz over the iPhone 5, the "Fast Money" traders on Wednesday looked at Apple second-derivative plays.
Trader Guy Adami likes Qualcomm, even though he admits it can be a "painful" stock to own at times given the precipitous drops it's prone to make. On the other hand, he noted that investors who've held onto the stock have made a nice profit.
"If, by some miracle, Apple sells off, you'll probably see the same thing happen in Qualcomm," said Adami, managing director of stockMONSTER.com. "Every sell off in this stock of meaningful percentage has been an opportunity. I think it's going to happen again."
To trader Joe Terranova, the future of smartphones is in Long Term Evolution, commonly referred to as 4G LTE, which provides wireless communication of high-speed data. That said, Terranova noted Verizon has outspent its competition on 4G LTE. In turn, he thinks it has the largest 4G LTE network right now.
Simon Baker, CEO at Baker Avenue Asset Management, agreed that 4G LTE is only gaining in popularity. In turn, he thinks the wireless networks will continue to get busier and busier. So he likes Akamai Technologies' stock because the company helps unclog those networks.
Options trader Pete Najarian likes Cirrus Logic, as its stock largely relies on shares of Apple. In fact, Najarian said around 62 percent of its revenues are derived from Apple. That number should continue to increase, too, as the chip maker is getting more and more into the audio and energy space.
At current levels, Najarian thinks it's a cheap stock, too, with more upside to go.
Elsewhere in the market, while tech world was abuzz about Apple's latest iPhone device, Google has enjoyed a stealth rally.
Shares of the Internet search giant increased by around 20 percent in the last three months. It's largely outperformed Apple's stock, too. Also, Google's Android smartphone seems to be holding its own against Apple's iPhone device. According to ComScore, Google boasts significant market share in the U.S. smartphone market.
(RELATED: Google Pullback 'Absolutely' a Buy: Analyst)
To Najarian, Google seems to be doing "most everything right."
"Obviously, they've got themselves positioned very well with Android. When they turn that into something far more profitable, then look out," said Najarian, co-founder of optionMONSTER.com. "That's the next leg that could push Google to the next leg up higher."
Meanwhile, Adami is eyeing Yahoo!. For a trade, Adami thinks YHOO is very attractive on a risk-reward basis.
"I think your risk is $14 or so to the downside and you're looking for up $20 on the upside," Adami said. "I'll make that trade everyday and it's given no indication that it doesn't want to continue to hold these levels and go higher. I like Yahoo! here."
When this story was published, CNBC and Yahoo! were engaged in a content sharing partnership.
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CNBC.com with wires.