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The bulls aren't done with Orexigen Therapeautics.

The beaten-down drug developer lit up our Heat Seeker tracking system on Thursday as investors snapped up the April 2 calls. OREX then rallied on Friday, ending the session up by 10 percent at $2.31, and the call buyers came back.

This time, the traders purchased more than 5,000 April 2.50 calls for $0.40 to $0.50 against open interest of just 630 contracts. The fact that those contracts are now going out of the money reflects a belief that the shares have significant upside in coming months. (See our Education section)

Despite its recent strength, OREX has lost more than two-thirds of its value in the last year. Most of that drop occurred last February after the Food and Drug Administration demanded more data on its Contrave obesity drug. The stock continued lower in June after the company saying regulators had made " unprecedented " demands regarding the treatment.

Prospects improved in September when management said it had identified a path for approval by 2014 . Shares popped on that news, consolidated late in the year, and are now attempting to continue higher.

Overall option volume was 29 times greater than average on Friday, with calls outnumbering puts by 10 to 1.

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