Twitter shares have had a fantastic year so far and are up nearly 43 percent year-to-date. However, as of Monday's close, the stock is just 3 percent shy of Wall Street's average target price of $53, according to data compiled by FactSet.
Yet some traders believe Twitter's run may be done.
On Monday, shares in Twitter gained 1.7 percent and bullish trades in the options market outpaced bearish trades by a ratio of 2-to-1. However, a trader placed a long-shot bet that Twitter will fall substantially in the coming days.
Specifically the trader bought 2,000 contracts of the 39.50-strike puts expiring on May 15 for 10 cents each. Since each options contract controls 100 shares, the trader is betting $20,000 that Twitter's stock will fall below $39.40 or 24 percent below Monday's closing price 12 trading days from the company's earnings release.
"The options market is only pricing about a 5 percent chance that option is in the money," said Nathan.