I believe and Wall Street agrees that JPMorgan Chase & Co. (NYSE:JPM) is the best of the best. So this week’s bearish note came as a surprise, causing JPM stock to fall fast Wednesday. However, dips are usually opportunities when they come into quality stocks like JPM.

I have had success catching significant dips in JPM stock. Even with less than ideal price action, my last trade on JPM still delivered profits out of thin air.

Fundamentally, even after the cautionary notes from management, JPM stock is still on solid ground. The 2008 financial crisis forced banks to reemerge stronger than ever ready to face the next challenge with many safety nets.

I do have to recognize that there are outside factors suppressing bank stocks. So I can’t be too aggressive buying JPM shares outright on every dip. Instead, I use the options markets where I can structure my trades with room for error.

Click to Enlarge Technically, the banking sector in general has been challenged by a runaway bond market.

As bonds rise, yields fall and investors perceive lower rates as a reason to sell the bank. Wednesday’s close is almost the 50% retracement of the post U.S. election rally of 2016.

My thesis is that JPMorgan Chase will weather this storm. At worst, it will meander through 2017. So I will sell downside risk against the extremist bears who foresee doom for the next few months. It is important that I don’t chase price targets, so my trades will not require that to win.

The Bet: Sell JPM Dec $70 put naked and collect $1.40 to open. This is a bullish trade that needs JPM stock to stay above my strike to win. Otherwise, I own the shares and will suffer losses below $68.60. Selling naked puts is not appropriate for all investors, but you can accomplish the same goal using spreads.

The Alternate Bet: Sell $70/$65 JPM credit put spread, which carries more limited risk. Yet the spread can still deliver 13% in yield. Compare this with risking $82 today with no margin for error then needing the stock to rally 13% from here just to match the performance of the spread.

Learn how to generate income from options here. Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. You can follow him on Twitter at @racernic and stocktwits at @racernic.