To receive further updates on this Barrick Gold Corporation (USA) (NYSE:ABX) trade as well as an alert when it’s time to take profits, sign up for a risk-free trial of Power Options Weekly today. 

While my indicators are giving sell signals — pretty solid sell signals, for that matter — I’m still somewhat neutral at this point. Historically speaking, October is one of the most volatile months of the year and, although we can’t rule out the possibility of recurrence, this happens to be an October within a presidential election cycle in which the incumbent party will do everything in its power to pass the torch to the party’s next standard-bearer.

One area of the market I’m watching especially closely is gold. Last week, the precious metal bumped up against important resistance, and it is trapped in a very bearish pattern right now. I think one of the reasons gold is breaking down is due to the anticipation of future interest-rate hikes. Gold doesn’t generate any yield at all — so, therefore, the shiny stuff is less appealing in comparison.

As I expect the price of gold to move lower from current levels, today’s recommendation is for a bearish play on Barrick Gold Corporation (USA) (NYSE:ABX).

Buy to open the ABX Dec 15 Puts (ABX161216P00015000) at $1.05 or lower.

InvestorPlace advisor Ken Trester brings you Power Options Weekly, which delivers 5 new options trades and his latest trading advice to you each Friday. It’s the perfect ‘bridge’ between investing in ordinary stocks and the turbocharged world of options trading.

Trester has been trading options since the first exchanges opened in 1973 with a winning streak that goes back to 1984 with money-doubling average annual profits since 1990. Try Power Options Weekly today and receive 2 weeks for the price of 1 for only $19.95.