In a large pot, bring 6 quarts of salted water to a boil. When water comes to a boil, add pasta, stirring constantly for the first minute to help prevent spaghetti from sticking together. Cook until al dente, about 8 to 10 minutes.
In a large saute pan, heat oil. When almost smoking, add olives and red pepper flakes. Saute for 3 minutes over medium high heat. Reduce heat to low and carefully pour in tomato sauce and simmer for 10 minutes.
Drain pasta in a colander, reserving 1/4 cup pasta water. Add pasta to the sauce and toss to coat completely. Add pasta water if you need to thin out the sauce a bit. Plate pasta and sprinkle with Parmesan cheese and basil.