Cloud stocks have been riding high the last few months, but one trader is betting that the run could be coming to an end for one name in particular: Oracle.
Shares of Oracle are up 13 percent since hitting a 52-week low of $42.57 back in June. According to "Options Action" trader Mike Khouw, the options market is implying there could be trouble ahead for the tech company.
On Tuesday, Oracle saw two times its average daily put volume. Within the activity Khouw highlighted a purchase of over 1,000 September 46/43 put spreads paying $0.30 per contract.
"That's somebody making a bearish bet that the stock could fall about 6 percent by September expiration, which falls on the 21st," Khouw explained Tuesday on CNBC's "Fast Money."
Shares of the computer software company are up nearly 2 percent year to date but still down over 10 percent from its all-time closing high of $53.48 back in March. Khouw noted that Oracle is also set to report its latest quarterly earnings next week, which has historically been a tough time for the stock.
"The average move on earnings is also about 6 percent," he said. In 6 of the last 8 quarters that move has been to the downside, and that seems to be what this trader is betting on.
Oracle is set to report its first-quarter earnings after the bell next Thursday. The stock was trading lower on Wednesday afternoon, around $48.15.