TheStreet.com TV Recap: Two Ways to Play Apple

How you do it depends on your orientation.
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How you play Apple (AAPL) - Get Report ahead of the iPhone release depends on your trading style, said Jim Cramer on TheStreet.com TV's Wall St. Confidential video and a RealMoney column Monday.

According to Cramer, traders should scale out of Apple on its the way up and then get ready to buy some when the stock inevitably gets slammed. Investors, on the other hand, should understand that "it's all a big blip and you should just own it."

"The history of Apple is to bring out new products," he explained. "When they bring out new products, there's a big run-up, and when the actual product comes out, there's a selloff.

"This time could be different, maybe we don't get that, but what I've been telling people is to scale out as it goes up but don't sell what amounts to the house's money," Cramer went on. "So as it goes higher, you should be smaller and smaller in it with the ability to be able to rebuild it on any decline."

Meanwhile, investors who are not able to trade it should pay "no attention" to what he's saying, Cramer said. "They should understand that I like Apple."

A particular data point about the iPhone was very telling, he said.

AT&T

called him on Friday asking him if he wanted one. "It amazes me that they needed to do that because I have an Apple store a mile from me and an AT&T store basically across the street from where I live," Cramer said. "I thought that's where I would get my iPhone, but AT&T assured me that they won't have it."

This, he said, tells him there is a scarcity of the product, which should in turn lead to "a lot of upside" for the stock.

"These kinds of situations that are fashion situations are dependent on the pipeline," Cramer explained. "You know the top doesn't come until the pipe is filled. In other words, when there is more supply of iPhones than demand that's when the top will occur and not until then."

Concerning the rumor that Apple wants to go to Hollywood studios and make new films for iTunes for $2.99 a pop, Cramer said it's "worthless" news for the stock.

"These kinds of things don't matter," he said. "It has no earnings per share impact, so forget about it. It's noise."

At the time of publication, Cramer had no positions in stocks mentioned.

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for

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