It's high time to bet against small caps, according to one chart-minded trader.
That means that "if indexes start rolling over, we could be relatively certain [traders] are going to come after small caps first," Gordon added.
Looking at a daily chart of the IWM, which tracks the Russell 2000, Gordon predicts that the exchange traded fund (ETF) could drop to its apparent support level of $119, which previously appeared to serve as a level of resistance.
Given the apparent potential for small-cap stocks to fall, Gordon wants to buy the October 7th weekly 124-strike puts and sell the October 7th weekly 120-strike puts for a total of $1.42 per share, or $142 per options contract.
The analyst is risking $142 to potentially make $258 in profits—meaning that he would nearly triple his money if he is proven correct.
The IWM was down nearly 2 percent as of Friday trading, falling as low as $122.64.