analyst Todd Gordon is betting on retail stocks despite the beating they've gotten this year, CNBC reported.

Gordon said the SPDR S&P Retail ETF (XRT) - Get SPDR S&P Retail ETF Report offers some "support" around the $38.50 level, which is close to where it finished trading Thursday. If the ETF holds around that level, it could "actually bounce back and retest the $40 or $41 level that it last hit in early August," Gordon said.

Gordon is playing the options market for his bullish move, selling the September monthly 39-strike put and buying the September monthly 35-strike put for a net credit of 84 cents, or $84 per options spread. If the XRT closes above $39 of September 15, Gordon makes an $84 credit on the trade. If it closes below $35, Gordon loses $316.

But Gordon plans to exit the trade early to avoid such a major loss in a countertrend trade. He'll get out if the XRT falls below $38, around the support line he's established. The XRT has trended down 13% since the start of the year to $38.32 at Thursday's close.

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