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Oil refiners due for a pullback: Trader

Options Action: Trouble for the refiners?

As crude oil prices have deteriorated this past week, oil refiners have broken out.

Shares of Valero and Marathon Petroleum surged to 52-week highs Monday when crude oil fell to its lowest level since April. But some traders are betting one of these stocks may have come a bit too far too fast.

On Monday, when Valero shares hit their highest level since 2007, put volume in the stock ran 1.5 times its daily average, and one trader made a bearish bet that the stock could fall as much as 2 percent by Friday. Specifically, that trader purchased 4,000 of the July 10 weekly 65-strike puts for 90 cents each. Since buying a put is a bearish strategy that allows a trader to sell a stock at a given price at a set time, this trade is profitable if Valero falls below $64.10 by Friday. On Tuesday morning, it was trading $65.50.

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"When you look at the chart of Valero you see it's had this great run but it's really starting to consolidate at these highs here," options expert and CNBC contributor Dan Nathan said Monday on CNBC's "Fast Money." Shares of Valero have rallied 32 percent this year, but have remained fairly rangebound since February.

"Options prices in this stock are pretty low here," added Nathan, founder of RiskReversal.com. However, in his opinion this might not be the best strategy to get short a stock. "Here's the thing about these weekly options. When you buy them you are long premium and if you get the timing, the direction or the magnitude of the move wrong you have a total loss here."

Crude oil was slightly higher in early Tuesday trading.