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Power Play: Riding the rebound in commodities

A worker at the Newmont Mining gold quarry mine west of Elko, Nevada
David Paul Morris | Bloomberg | Getty Images

Commodity-related assets are rallying in October, with WTI crude and gold up about five percent.

John Buckingham, chief investment officer of AFAM Capital, tells CNBC's "Power Lunch" on Tuesday there's value in commodity stocks if you accept the risks.

"Commodity stocks are not for the faint of heart and our overall exposure is not overly grand, given our penchant for broad industry/sector diversification, but those who would like to add to their exposure might wish to consider 'safer' (notice the quotations as one must still be braced for significant volatility) names," Buckingham said.

Read More The gold rally is 'doomed to fail': Strategist

He believes the slide in some of these stocks is not justified, especially since the stocks were not overpriced before the commodities sell-off.

Buckingham likes "gold miner Newmont Mining, international resources giant BHP Billiton, chemical producer Celanese, oilfield services leader National Oilwell Varco, refining and marketing concern HollyFrontier and integrated oil titan Royal Dutch Shell."

Newmont Mining is higher during trading, while BHP Billiton, Celanese, National Oilwell Varco, HollyFrontier and Royal Dutch Shell are all lower.