Pros: 6 Ways to Trade as Telecom Scrambles

On Wednesday Wall Street was absolutely buzzing after the Department of Justice filed a lawsuit to block AT&T’s acquisition of rival T-Mobile.

“AT&T’s elimination of T-Mobile as an independent, low-priced rival would remove a significant competitive force from the market,” the U.S. said in its filing.

Although the government’s objection had been a topic of discussion, investors weren’t necessarily expecting action—and as a result they went scrambling.

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And, as with any sudden development in the market, money pros look for opportunity to profit. Here where the Fast Money traders see opportunity:

Although it may seen obvious that AT&T will be hurt, OptionMonster Jon Najarian thinks rival Verizon loses too—because consolidation in telecom would have generated pricing power.

And on the plus side, Najarian thinks wireless infrastructure firms such as American Tower , Crown Castle and SBA Communications win. “Having 4 customers is always better than 3,” he says with a smile. And if you’re looking for another winner, Najarian suggests Clearwire .

Trader Steve Grasso thinks the winner is Sprint . However, before establishing a long position he suggests looking at the chart.

”$3.79 is the sticky price in the stock,” he says. “I would not add to my position unless it holds this key technical retracement level,” he says.

But that doesn’t mean he’s negative, he’s not. Grasso adds its possible that fundamentals push Sprint through resistance because, “Sprint has other things going for it including partnership with Cablevision .”

Zach Karabell just can’t get behind a long position in Sprint. “They’re still bleeding customers,” he says. However, he does like the tower plays mentioned by Jon Najarian.

Both Steve Cortes and Patty Edwards aren’t concerned that developments will drag down Verizon significantly. In fact, they suggest the pullback may present an opportunity. “As far as I’m concerned Verizon is a buy for its dividend yield of about 5.4%,” says Cortes. “And looking at fundamentals, “they provide very good service,” adds Edwards.

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Trader disclosure: On August 31, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Najarian is long (AAPL) call spreads; Najarian is long (CB) call spreads; Najarian is long (BAC) call spreads; Najarian is long (JBL) call spreads; Najarian is long (TXT) call spreads; Najarian is long (CIGX); Cortes is long (GLD); Cortes is long Treasuries; Cortes is long (WMT); Cortes is long (SO); Cortes is long (BAC); Cortes is short (EUR); Cortes is short (BAC); Karabell is long (AAPL); Karabell is long (BAC); Karabell is long (GS); Karabell is long (GOOG); Rivertwice is long (AAPL); Rivertwice is long (BAC); Rivertwice is long (GS); Rivertwice is long (GOOG); Rivertwice is short (GDX); Rivertwice is short (GLD); Rivertwice is short (XLF); Edwards is long (XLF); Edwards is long (APA); Edwards is long FXC)

For Patty Edwards
Trutina is long (JOYG)
Trutina is long (IAU)
Trutina is long (SLV)
Trutina is long (AMZN)
Trutina is long (AAPL)
Trutina is long (C)
Trutina is long (GOOG)
Trutina is long (GDX)
Trutina is long (ORCL)
Trutina is long (QCOM)
Trutina is long (GLD)
Trutina is long (JWN)
Trutina is long (TGT)
Trutina is long (FCX)
Trutina is double short SDS

For Tony Wibble
Janney Montgomery Scott is a market maker in the securities of (LSTZA), (AMZN), (DIS) and (NFLX), and may at any time hold a long or short position in these securities. Janney Montgomery Scott may seek compensation for investment banking services from the subject company (ies) (LSTZA), (AMZN), (DIS) and (NFLX) securities in the next 3 months.

CNBC.com with wires.