Option traders appear to be setting up for a bullish move on CA Technologies (CA). Traders plowed into 13,932 new call option contracts -- 19.32 times the average volume -- on the stock on Monday. And we know that traders were eager to get into this trade because 98% of the trades came in on the ask price.

CA recently bounced off of support at $18 and is nearing resistance at $20.50. The stock closed Monday at $20.17, up 6.69% during the past month.

Option traders appear to be setting up for a bullish move on Cobalt International Energy, Inc. (CIE). Traders plowed into 1,553 new call option contracts -- 4.65 times the average volume -- on the stock on Monday. And we know that traders were eager to get into this trade because 98% of the trades came in on the ask price.

Cobalt just bounced up off of support at $7. The stock closed Monday at $8.25, down 1.32% during the past month.

Analyst Upgrades

• Oppenheimer upgraded ConocoPhillips (COP) to outperform from perform after the company sold its stake in Syncrude. The firm has a $70 price target for shares.
• Leerink upgraded UnitedHealth (UNH) to outperform from market perform. The firm sees upside to the company's 2010 guidance and finds shares attractively valued at currently levels.
• Citigroup upgraded both Mirant (MIR) and RRI Energy (RRI) to hold from sell after the two companies agreed to merge.
• Cooper Companies (COO) was upgraded to outperform from market perform at FBR Capital.
• Expedia (EXPE) was upgraded to conviction buy from neutral at Goldman.
• A123 Systems (AONE) was upgraded to buy from hold at Deutsche Bank.

U.S. stock futures advanced slightly Monday morning reacting to a finally approved aid package to debt-stricken Greece, several deal news and rumors and as investors geared up for the the unofficial kick off of first quarter earnings season.

On Sunday, the finance ministers of the 16 eurozone nations agreed on a massive aid package for the heavily indebted Greece, making euro30 billion ($40 billion) in loans available to Greece this year if it requests for the money, while the International Monetary Fund would contribute about another euro10 billion. Greece's borrowing costs immediately dipped Monday. In return, Greece has promised it will get a handle on its debt by instigating deep budget cuts so it can reduce its budget deficit. European shares were generally higher.

Analyst Upgrades

• Kaufman Bros. upgraded Vancelnfo (VIT) to buy from hold, citing better earnings visibility. The firm raised its target price for shares to $26 from $22.
• Janney Montgomery upgraded Progressive (PGR) to buy from neutral with an $18.50 price target, citing valuation and market share gains.
• JPMorgan upgraded Marriott (MAR) to overweight from neutral. The firm has a $36 price target on the stock.
• eBay (EBAY) was upgraded to outperform from neutral at Credit Suisse.
• Werner Enterprises (WERN) was upgraded to neutral from underperform at Credit Suisse.
• CNOOC (CEO) was upgraded to neutral from underperform at Macquarie.

TheStreet.com's Jim Cramer says this is the first real deal to take advantage of the new low prices of this era.

Editor's note: Jim Cramer will present his 2009 stock outlook for the first time at TheStreet.com Investment Conference on Saturday, Oct. 25. Limited seating. Act now.

The Exelon (NYSE: EXC) (Cramer's Take) bid for NRG Energy (NYSE: NRG) (Cramer's Take) is what we need to see if we are going to find terra firma. We need to see healthy companies with good balance sheets going after other healthy companies that have balance sheets that won't let them do well.

If there were no credit crunch, NRG -- like Constellation Energy (NYSE: CEG) (Cramer's Take) before it -- would be doing just fine. In fact, you would be wondering what the heck it was doing so low. Reliant Energy (NYSE: RRI) (Cramer's Take) and Mirant (NYSE: MIR) (Cramer's Take) also fit the same pattern. These are all companies that need ready access to capital, and it doesn't exist right now.

NRG has a pro-nuke history and so does Exelon. Nuclear power has taken on an almost holy image in this country if the plants are already built because you simply can't afford to build new ones. NRG is one of the few utilities in the whole country that is trying to build plants, something that would be fabulous for Exelon and NRG's shareholders alike. It's a great match.

Note: The Daily Option Update is provided by Stock Options Specialist Paul Foster of theflyonthewall.com.

Mirant Corp. (NYSE:MIR) implied volatility Elevated at 32 as MIR trades near Record levels.

MIR is expected to report full EPS & hold a conference call on 3/5. MIR has been frequently mentioned as a potential candidate for announcing a recapitalization or a share repurchase. MIR call option volume of 1,044 contracts compares to put volume of 3,001 contracts. MIR overall option implied volatility of 32 is above its 26-week average of 26 according to Track Data, suggesting larger price risks.

New Century Financial Corp (NYSE:NEW) low cost deep OTM April & May 5 put spread trades as Hedge.

NEW, a real estate investment trust, providing mortgage products to borrowers nationwide, is recently down 37c to $15.47. NEW deep out of the money April 5 puts traded 4,715 contracts near the bid at .12 & .13 cents above its theoretical value of .01 cent. NEW deep out of the money May 5 puts traded 5,568 contracts on the offer of .40 cents above theoretical value of .04 cents according to Track Data, suggesting spreaders paying up to hedge risk.