UPDATE: Trading Apple Into Earnings

Apple has certainly generated plenty of excitement lately with all the new apps for the iPhone and the return of Steve Jobs.

But will the company continue to wow the crowds with their earnings on Tuesday. Just when you think Apple can’t have any more surprises up its sleeve, out comes another one.


JPMorgan analyst Mark Moskowitz has recommended investors add positions in the stock saying business volumes should exceed investors' expectations. He also raised his price target to $167.50 from $155.

On Tuesday Apple is scheduled to report earnings, according to Reuters Estimates they should show a profit of $1.17 a share.

What should you expect?

My best guess is that the stock will trade off after earnings for a few days, says Tavis McCourt of Morgan Keegan. Then investors will figure out that guidance is low and there are great reasons to own the stock heading into the back half of the year.

The stock has run from $140 to $151 in the blink of an eye, counsels Pete Najarian. I’d get long Apple but on a pullback. However volatility is low so I don’t anticipate a big move post earnings.

I think the trade here is RIMM over Apple, counsels Joe Terranova, just for valuations.

Find out what Dan Niles of Alpha One Capital Partners has to say. Watch the video to your left!

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Trader disclosure: On July 20th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova Owns (RIMM), (TER), (MSFT), (SUN), (FTO); Seymour Owns (APPL), (BAC), (DRYS), (EEM), (FCX), (FXI), (INDY), (SBUX), (NOK); Grasoo Owns (V), (WMT), (XLF), (BAC), (CSCO); Grasso's Clients Owns (GS), (V), (WMT), (MA), (UNH); Najarian Owns (FCX) Call Spread; Najarian Owns (INTC) Call Spread; Najarian Owns (JNJ) Call Spread ; Najarian Owns (MS) Call Spread; Najarian Owns (MSFT) Stock & (MSFT) Short Calls; Najarian Owns (PALM) Call Spread; Najarian Owns (V) & (V) Short Calls; Najarian Owns (WNR) Stock & (WNR) Short Calls; Najarian Owns (YHOO) Call Spread