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Take Your Position: American Express

Considering shares have climbed 20% over the past 5 days, how should you trade American Express ahead of earnings?

The biggest driver behind those recent advances comes from a filing in which American Express said the number of its clinets who are past due had decreased, though modestly. Investors took the news to mean that consumers might not be in as bad a shape as previously feared.

And earlier in the week J.P. Morgan upgraded AXP to "neutral" from "underweight," saying falling revenue should be outpaced by lower expenses.

Considering American Express is the only credit card company that did not cut its dividend and the only one that remains profitable, according to quarterly reports, how should you play it ahead of earnings on Thursday?

I think there could be more upside in this stock, muses Karen Finerman, but I wouldn’t buy it right here.

The people who use American Express are slightly more upscale than those who use Visa and Mastercard , adds Jared Levy. That should bode well.

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Trader disclosure: On July 17th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Najarian Owns (BTU) Call Spread; Najarian Owns (F) Calls; Najarian Owns (INTC) Call Spread; Najarian Owns (JPM) And Is Short (JPM) Calls; Najarian Owns (MCD) And Is Short (MCD) Calls; Najarian Owns (MS) Call Spread; Najarian Owns (MSFT) And Is Short (MSFT) Calls; Najarian Owns (SU) Calls; Najarian Owns (XLF) Call Spread; Najarian Owns (YHOO) Call Spread; Finerman's Firm Owns (MSFT), (NOK), (WMT), (APC); Finerman's Firm And Finerman Own (WFC) Preferred Shares, Finerman's Firm Is Short (WFC); Finerman's Firm And Finerman Own (BAC) Preferred Shares; Finerman's Firm Is Short (IJR), (IYR), (IWM), (MDY), (SPY), (USO); Finerman's Firm And Finerman Own (RIG); Terranova Owns (TER), (RIMM), (SUN), (MSFT), (FTO); Terranova Works For (VRTS); Terranova Is Chief Alternatives Strategist Of Virtus Investment Partners, Ltd.; Terranova Is Co-Portfolio Manager Of The Virtus Diversifier PHOLIO; Virtus Diversifier PHOLIO Owns (IGE), (DBC), (DBV)

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