Bill Baruch's Platinum Futures Trade

Bill Baruch of Blue Line Futures suggested on CNBC's "Futures Outlook traders should consider a bullish futures trade in platinum. The precious metal gained 20% since the end of October and Baruch sees more upside ahead because of the weaker U.S. dollar, Chinese buying and potential inflation.

Baruch would buy the January contract at $1,030 and he would place a stop loss at $990. His target price is at $1,190. His payout is 4 to 1 as he is looking to gain $8,000, while he is hoping to limit his losses to $2,000.