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This restaurant could fall more than 15 percent in one month: Trader

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Options Action: Trouble ahead for BJ's Restaurants?

BJ's Restaurants has rallied more than 5 percent in 2017, but one trader is making a big bet that there could be trouble ahead for the stock.

The company reports earnings on Thursday April 27 after the closing bell, and according to Mike Khouw of Optimize Advisors, BJ's is "a stock that typically moves pretty sharply on earnings – 6.5 percent on average."

Khouw noted that the sentiment in the options market is siding with the bears ahead of its report. "[BJ's Restaurants] saw over 100 times the average daily put volume," Khouw said Tuesday on CNBC's "Fast Money."

It was one sizable trade that actually "pretty much tripled the open interest in [BJ's]," said Khouw. There was a buyer of 5,000 of the May 40/35 put spreads paying about $1 each. This is a bearish bet where a trader will buy a put and sell a put to offset the cost. The goal is for the stock to fall to that lower strike put by expiration, or in this case $35 in less than a month. That is a more than 15 percent decline from current levels.

Analysts polled by FactSet are expecting BJ's Restaurants to post earnings of 35 cents per share on $255 million in revenue.