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Take Your Position: Apple

Considering shares have climbed nearly 30% over the last 3 months, how should play Apple ahead of earnings?

The iPod and iPhone maker reports quarterly results on Monday after the bell and what a quarter it’s been.

Over the last 3 months, Apple CEO Steve Jobs made his first high-profile appearance, following a liver transplant in the spring. He unveiled new iPods, including a Nano with a built-in video camera, and announced a new version of iTunes.

The company also released a new version of the Mac computer operating system, Snow Leopard, and research groups IDC and Gartner reported Apple gained computer market share in the U.S. during the period.

Apple also announced it would start selling iPhones in China with wireless carrier China Unicom.

What should you expect?

Morgan Keegan analyst Tavis McCourt tells Fast Money that he expects results will show Apple did well across the board. He believes that the new version of Snow Leopard jolted Mac sales more than expected, though iPods may fall short of expectations.

However, overall, he expects Apple to handily beat the average Street view.

What’s the trade?

Although I like the stock and would be a buyer on dips, I don’t think I’d be buying aggressively into the numbers on Monday, counsels McCourt.

I'm definitely a buyer of Apple, adds Steve Grasso. Once people buy an iPod then they get an iPhone and then a Mac. It's a virtuous cycle for this company.

I'm also a buyer of Apple, says Joe Terranova. I think they report top line earnings that are great. Do not be afraid to own it. I think it goes higher.

What do you think? We want to know!


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Trader disclosure: On Oct. 16th, 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 (HGSI) Call Spread; Najarian Owns (XLF) Calls; Najarian Owns (YHOO) Call Spread; Najarian Owns (BAC); Najarian Owns (WFT) Calls; Grasso Owns (ASTM), (BAC), (C), (COST), (PRST), (V), (WMT), (FAZ), (XLF), (AAPL); Terranova Owns (SUN), (OIH), (HOC), (HES), (POT); Terranova Is Short (GRMN), (CCL)

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