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How to play Yahoo, Chipotle & Verizon earnings

Yahoo is set to report quarterly earnings Tuesday, and investors continue to watch whether the spin-off of its Alibaba stake will be taxed. But one "Fast Money" trader believes the stock will go higher even if the deal is taxed.

"I do think that there's value" in Yahoo either way, said trader Tim Seymour. He owns shares of the stock, which has fallen nearly 34 percent this year.

Yahoo Inc.
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Yahoo said late last month it would continue with the planned spin-off despite the IRS declining to rule if it would be tax-free. Regardless, Yahoo could report disappointing margins, which would drag its shares down even more, said trader Steve Grasso.

Read MoreYahoo to spin off Alibaba stake despite no IRS ruling

Chipotle Mexican Grill

Fast casual chain Chipotle also reports Tuesday. The stock has climbed about 5 percent this year in what trader Guy Adami called "extremely volatile" movements.

He would look to buy only if the stock falls on a disappointing report.

T-Mobile

Verizon posts earnings Tuesday, but trader Grasso sees more upside in competitor T-Mobile. The stock has soared more than 50 percent this year.

Disclosures:

Tim Seymour

Tim Seymour is long AAPL, BAC, CLF, DIS, F, FCX, GE, GM, GOOGL, INTC, JPM, KO, LGF, T, TWTR, Tim's firm is long BABA, BIDU, MCD, NKE, NOK, SBUX, YHOO.

Steve Grasso

Steve is Long AAPL, BA, BAC, CC, DD, DIS, DECK, EVGN, FIT, KBH, MJNA, MBLY, MU, OLN, PFE, PHM, T, TWTR, GDX firm is long BP, COP, CVX, IBM, NE, NEM, OXY, RIG, WYNN kids own EFA, EFG, EWJ, IJR, SPY

Karen Finerman

Karen is long BAC, C, FINL, FL, GOOG, GOOGL, JPM, KORS, KORS call spreads, M, URI, she is short SPY, Her firm is long ANTM, AAPL, BAC, C, DIS, FINL, FL, GOOG, GOOGL, GPS, JPM, KORS, KORS call spreads, M, M calls, M call spreads, SUNE, SUNE call spreads, URI, URI long puts, her firm is short IWM, SPY, MDY, USO, Karen Finerman is on the board of GrafTech International.

Guy Adami

Guy Adami is long CELG, EXAS, INTC, Guy Adami's wife, Linda Snow, works at Merck.