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Power Playbook: 3 ways to play China's rate cut

Investors observe stock market at a stock exchange hall on October 20, 2015 in Nanjing, Jiangsu Province of China.
ChinaFotoPress | Getty Images
Investors observe stock market at a stock exchange hall on October 20, 2015 in Nanjing, Jiangsu Province of China.

On Friday, China's central bank lowered its one year benchmark bank lending rate by 25 basis points to 4.35 percent, effective October 24.

This is the sixth time the People's Bank of China (PBOC) cut interest rates since November, in an aggressive effort to invigorate lagging economic growth.

Read MoreStocks higher amid PBOC cut

The move came just days after China's growth slowed to a six-year low of 6.9 percent in the latest quarter

Jim Iourio, managing director at TJM institutional Services, told CNBC's "Power Lunch" Friday the three best ways investors can take advantage of China's rate cut.

Copper

"Since China is accounts for nearly 50 percent of the world's demand for copper, I expect today's weakness in the metal to continue. Therefore, i would sell it immediately." said Iourio.

Friday, copper futures for December plummeted nearly 1.5 percent to $2,3515 per pound.

Crude

"If crude oil looks like it is going to settle near or below $44, i will consider selling," said Iourio.

Brent crude prices were down nearly 30 percent to $47.80 a barrel on Friday afternoon, after dropping nearly 63 cents earlier in the day.

Gold

"China's move to ease monetary policy might ease the way for a Fed hike," said Iourio. "Right now, I consider gold a buying opportunity provided it stays above $1,160.

Gold has dropped to a 5 1/2 year low on hopes the Fed would raise rates in 2015. Friday's slide pushed bullion prices 0.3 percent, to $1,62.35 per ounce.

Read MoreWhy China, commodities won't sway Fed