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.