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• Ziopharm bulls look for explosive move
• Limited upside seen in new Kraft Foods

• CVA 0% Rate It

Covanta is pushing against long-term resistance, and the bulls are looking for a breakout.

optionMONSTER's Heat Seeker monitoring system detected the purchase of 7,500 March 17.50 calls for $0.70 and the sale of an equal number of March 15 puts for $0.30. Volume was more than 5 times open interest at both strikes.

The trade cost just $0.40 and lets the investor control 750,000 shares at a fraction of their cost. It will make money from a break above $17.50 but also faces downside below $15.

CVA, which burns garbage to generate electricity, is off fractionally at $17.14 in morning trading. The stock is now back to the same $17-$18 area, where it has peaked several times since early 2010. Some traders could expect a big rally if it is broken, which would explain today's bullish activity.

Overall option volume is more than 50 times greater than average so far today.

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