Sprint Nextel (S) implied volatility is up amid heavy trading in the options on the phone company. Shares touched new 52-week lows of $2.25 this morning, but were recently down just a penny to $2.71. Meanwhiile, 92,000 calls and 29,000 puts traded on Sprint so far. The top trade is a 10,000-contract block of Jan 4 puts sold at $1.60. It was tied to 740K shares at $2.59 and possibly a closing trade. Jan 2.5 calls are the most actives, with 22,216 traded and 85 percent trading at the ask. The flow includes some Jan 2.5 – 4 call spreads, which seems to be bullish trading on the stock. Nov 3 and 3.5 calls are seeing interest as well. Meanwhile, implied volatility in the options on the stock is rallying 31 percent to 122 and beyond the 52 week highs set yesterday. Bullish trading is possibly a play on Apple’s event today, which is expected to include one or more new iPhones. A report released yesterday indicated that Sprint is investing $20 billion in a long-term contract to gain access to the popular product.