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Apple Unveils New iPhone, So What's the Trade?

Apple introduced the new iPhone 4S on Tuesday and is expected to also unveil the fifth version of its popular smartphone device.

The new iPhone, expected to be faster, thinner and larger-screened, is likely to come loaded with the updated iOS5 software that Apple unveiled in June. Some of the new features include improved notification functions and better Twitter integration.

(RELATED: Live Blog of Apple iPhone Event)

The new iPhone is the first major product launch since Steve Jobs stepped down as CEO. In August, Jobs resigned as CEO after having taken a third medical leave of absence. He is a survivor of pancreatic cancer.

CEO Tim Cook hosted Tuesday's event from the company's headquarters in Silicon Valley.

What's the Trade?

Although Apple's stock is down 10 percent over the last two weeks, trader Joe Terranova remains bullish on the technology giant. The recent decline is not a concern if you are long the stock, he said. For those who want to hedge it out, though, he would buy puts in the Technology Select Sector SPDR exchane-traded fund.

"But Apple in the long-run, the fundamentals are solid," Terranova argued, adding it's in its own asset class.

Veracruz founder Steve Cortes takes a different view on Apple. Due to the slowdown in China, he has been bearish on technology. He has shorted technology stocks broadly and Apple specifically. Recent economic data from Asia has improved, but Asian stock markets are still struggling, he noted. So he's not optimistic about technology stocks going forward.

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Trader disclosure: On Oct 4, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Terranova is long LQD; Terranova is long MUB; Terranova is long VRTS; Terranova is long OXY; Terranova is long HOS; Terranova is long OIH; Terranova is long AXP; Terranova is long EMC; Terranova is long WFC; Terranova is long AAPL; Terranova is long IBM; Cortes is long (CAG); Cortes is long (PEET); Cortes is long (SO); Cortes is long the Euro; Cortes is short (SI); Cortes is short (DB); Cortes is short the Australian Dollar; Edwards owns XLK

For Joe Terranova
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
Virtus Investment Partners Owns More Than 1% Of Building Materials Holdings
Virtus Investment Partners Owns More Than 1% Of (CASS)
Virtus Investment Partners Owns More Than 1% Of (CSVI)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (KRC)
Virtus Investment Partners Owns More Than 1% Of (LHO)
Virtus Investment Partners Owns More Than 1% Of (NRCI)
Virtus Investment Partners Owns More Than 1% Of Sun Pharmaceutical Industries Ltd
Virtus Investment Partners Owns More Than 1% Of (RLI)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLE)
Virtus Investment Partners Owns More Than 1% Of (XLF)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLK)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (SUBK)
Virtus Investment Partners Owns More Than 1% Of (WDFC)
Virtus Investment Partners Owns More Than 1% Of (YDNT)
Virtus Investment Partners Owns More Than 1% Of Domino's Pizza UK & IRL PLC

For Patty Edwards
Trutina Financial owns AMZN
Trutina Financial owns C
Trutina Financial owns KO
Trutina Financial owns MO
Trutina Financial owns GOOG
Trutina Financial owns JWN
Trutina Financial owns Gold
Trutina Financial owns Silver
Trutina Financial owns QCOM

For Brian Kelly
Funds managed by Brian Kelly are long Treasury Bonds
Funds managed by Brian Kelly are short (LEN) options
Funds managed by Brian Kelly are short (SLV) options
Funds managed by Brian Kelly are short S&P futures
Funds managed by Brian Kelly are short Copper
Funds managed by Brian Kelly are short (CAT) options

For Dan Dicker
**No disclosures

For Steve Wilder
CapStone Investments makes a market in (AMR)

CNBC.com with wires.