With Apple reporting earnings on Tuesday after the bell, derivative trades are back on the radar. What’s the way to play?
Although a slew of names could move on strong results from Apple, following are a few names CNBC's Fast Money pros like best:
Skyworks
As the maker of chips in both tablets and smartphones, trader Pete Najarian likes this company as a related trade because they execute reliably.
“They beat on earnings – and revenue,” he says.
On July 19th the company reported a third-quarter profit of $49.3 million, or 26 cents per share, but excluding items, it earned 45 cents per share. Revenue rose 9 percent to $389 million.
Analysts on average were expecting earnings of 44 cents per share on revenue of $382.2 million, according to Thomson Reuters I/B/E/S.
"Based on new program ramps and the depth of our product pipeline, we expect to outpace market growth in the second half of 2012," Chief Financial Officer Donald Palette said in a statement.
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CLASSIC SLIDESHOW: Top Apple Related Stocks for 2012
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Qualcomm
Trader Pete Najarian and trader Stephen Weiss both like Qualcomm as Apple related trades because they're "the big supplier of both 3G and 4G chips," says Najarian. It's a technology they both think is the future of the smartphone industry.
In addition, Qualcomm announced a new corporate structure that it says will help speed up product delivery and protect its patent portfolio.
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CLASSIC SLIDESHOW: Favorite Dividend Yielding Stocks
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NXP Semiconductor
Trader Joe Terranova is a fan of NXP Semiconductor, a maker of semiconductor chips that enable mobile payments, NXP is a supplier to Apple as well as Google’s Android platform.
The company's NFC technology passes encrypted information between devices at close range without contact. Instead of swiping a credit card, shoppers can wave their smartphone near a terminal, effectively turning an NFC-enabled phone into a "mobile wallet."
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Bonus: Intel
If you watch CNBC’s Fast Money regularly, you know that trader Pete Najarian talks about Intel, almost any chance he can get.
In this case, he likes Intel as an Apple-trade because they make the chips for the MacAir, which he owns personally. And looking at our own laptop, he says, “mine is so much lighter. It’s like carrying a magazine. It’s great for travelling.”
Of course, as the world’s largest chip maker, Intel is far more than an Apple-trade. In fact, in the past Najarian has also recommended Intel as a div yield play. (Get all the details. Click here.)
Posted by CNBC's Lee Brodie
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Trader disclosure: On July 24, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Steve Weiss is long EUO; Steve Weiss is long WLP; Steve Weiss is long QCOM; Steve Weiss is short X; Steve Weiss is short AKS; Steve Weiss is short JCP; Pete Najarian is long AAPL; Pete Najarian is long BAC CALLS; Pete Najarian is long C; Pete Najarian is long JPM CALLS; Pete Najarian is long INTC; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long MSFT; Steve Grasso is long ASTM; Steve Grasso is long BA; Steve Grasso is long D; Steve Grasso is long FRO; Steve Grasso is long LF; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long MO; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is long VLO; Steve Grasso is long XLU
For Boris Schlossberg
Nothing to Disclose
For Michael Pachter
WS makes a market in the securities of the subject company: NFLX
WS managed a public offering of securities within the last 12 months NFLX
The research analyst, a member of the research analyst’s household, any associate of the research analyst, or any individual directly involved in the preparation of this report has a long position in the common stocks.: NFLX
WS or one of its affiliates beneficially own 1% or more of the common equity securities NFLX
WS makes a market in the securities of the subject company: FB
WS managed a public offering of securities within the last 12 months: FB
WS co-managed a public offering of securities within the last 12 months: FB
The research analyst, a member of the research analyst’s household, any associate of the research analyst, or any individual directly involved in the preparation of this report has a long position in the common stocks: FB
WS or one of its affiliates beneficially own 1% or more of the common equity securities: FB
For Jeff Kilburg
Nothing to Disclose
For Steve Milunovich
This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and non-securities services are being, or have been, provided: AAPL
Within the past 12 months, UBS Securities LLC has received compensation for products and services other than investment banking services from this company/entity: AAPL
UBS AG, its affiliates or subsidiaries beneficially owned 1% or more of a class of this company`s common equity securities as of last month`s end (or the prior month`s end if this report is dated less than 10 days after the most recent month`s end): AAPL
UBS Securities LLC makes a market in the securities and/or ADRs of this company: AAPL
UBS AG, its affiliates or subsidiaries held other significant financial interests in this company/entity as of last month`s end (or the prior month`s end if this report is dated less than 10 working days after the most recent month`s end): AAPL
For Stuart Freeman
Nothing to disclose
CNBC.com with wires.
