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Traders bet that upside is over for Best Buy

Options Action: The bet on Best Buy

Shares of Best Buy soared more than 20 percent last week, after the consumer electronics retailer beat earnings estimates and raised guidance for the year.

But now some traders appear to be betting that the gains are over.

On Monday, one trader sold 5,000 September 36 call options for $1.05. This implies an expectation that Best Buy shares will be below $37.05 at September expiration on Sept. 18.

"I'm betting these are people long the stock and think there isn't that much more room to the upside," CNBC contributor Mike Khouw said Monday on CNBC's "Fast Money."

Read More Top trader Najarian sees pop in Best Buy shares

Best Buy shares fell 2 percent Tuesday morning, which lands the stock price at about $36. Still, that's only slightly below where the stock traded on Monday morning, when the trader made the options trade.

Despite Best Buy's recent surge, the stock is down more than 7 percent year to date. Analysts have an average price target of $41 according to FactSet.