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Could this be the next Yelp?

Yelp shares continued to rally Friday on reports that the company could be exploring a sale. But the news had the options market buzzing on what could potentially be the next takeover of a beaten-down high growth stock: 3D Systems.

"The 3D printing space was a full-blown mania in 2012 through 2014," said options expert Dan Nathan on CNBC's "Fast Money" Thursday. After rallying 800 percent from January of 2012 to January of 2014, 3D systems' shares have fallen 80 percent from their all-time highs and just hit a 52-week low. But on Wall Street, one man's trash can be another's treasure, and one options trader smells opportunity.

"That Yelp news had me looking at this name because I was looking for beaten-down, once-loved manias. And 3D Systems definitely fits that." He added short interest in 3D printing is near 35 percent. "The sentiment is bad," said Nathan, founder of RiskReversal.com.

Read MoreYelp may put out 'for sale' sign after 1st quarter letdown

On Thursday, when option volume ran nearly two times its daily average, one trader bought of 4,000 June 25-strike calls for 40 cents.

"What's interesting about [this trade] is options prices are relatively low for 3D Systems," said Nathan. Since buying a call option gives one the right to purchase a stock at a set price at a given time, this is a bet that 3D Systems will rise above $25.40, or 13 percent, in the next month.

"If you get the slightest news of consolidation in the 3D space or M&A chatter, you're going to see this stock up very quickly in a very short period of time," added Nathan. "It's like a coiled spring with all that short interest."

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  • Melissa Lee

    Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

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