Apple (AAPL) shares rallied on Tuesday as rumors surfaced that the company will hold a "special event" in San Francisco on September 12. It is widely assumed the star of the show will be the iPhone 5, expected to be the first radical makeover of the smartphone since 2010. The buzz sent Apple's stock back above $600, more than recovering losses suffered in the wake of a disappointing earnings release last week.

Jon Najarian co-founder of TradeMonster.com says the potential not just for a new phone but also a smaller version of the iPad has investors in a tizzy. "The stock could be closer to $700 on September 12th if they announced both; but I don't think they will," Najarian says in the attached clip.

By the Option Monster's reckoning a new iPhone should be more than enough. The Samsung Galaxy III may have beaten Apple to the punch on key features, but an improved form-factor, better screen, and 4G will make up for the delay. Apple's hidden advantage over Samsung isn't the phone but customer service. While raving about the hardware Najarian says the support is a disaster. In stark contrast, Apple's customer service rivals that of any company on earth.

The same rumor mill that brought us word of the September 12th event is placing the release date on or about September 19th. That timing would give Apple opportunity to take pre-orders prior to the end of the current quarter but not ship in large enough quantities to make up for dwindling iPhone 4s sales. Najarian says the numbers Apple will rack up after the announcement of the iPhone 5 will be impressive enough as is.

"This phone in its first full quarter could do over 42 million upgrades from people who have waited for the true 4G phone," the trader gushes, "if they do 5 to 7 million pre-orders of this phone people will just go gaga."

Going gaga would be nothing new but still come as a welcomed relief for Apple analysts.

Check out details of Jon's next Invest Like a Monster event here.