S – Sprint Nextel Corp. – A number of options players are positioning for a rebound in shares of the telecommunications company by employing diverse trading strategies on the stock today. Sprint’s shares fell 1.5% to $3.89 by 11:45 am ET. Optimistic investors purchased approximately 5,100 calls at the October $4.0 strike for an average premium of $0.28 apiece. Call buyers are prepared to make money if the price of the underlying stock jumps 10.0% to surpass the average breakeven price of $4.28 ahead of expiration day in October. A longer-term bullish individual initiated a three-legged spread in order to position for a sharp recovery in Sprint’s shares by expiration day in January 2011. The investor appears to have sold 2,000 puts at the September $3.5 strike for an average premium of $0.39 each, purchased the same number of calls at the September $4.0 strike for premium of $0.54 apiece, and sold 2,000 calls at the higher September $5.0 strike for an average premium of $0.24 a-pop. The investor responsible for the transaction receives a net credit of $0.09 per contract, which he keeps as long as Sprint’s shares exceed $3.50 through expiration. Additional profits start to amass for the trader if shares rally above $4.00. Maximum available profits of $1.09 per contract – including the net credit pocketed on the spread – pad the investor’s wallet if shares in Sprint surge 28.5% to exceed $5.00 by January 2011 expiration day.