United States Steel Corporation (NYSE:X) has had a miserable 2017 in which it has shed nearly 50% in three months. But fret not, X stock holders — there’s light at the end of this tunnel, and it’s not a train.

Technically speaking, U.S. Steel has been posting higher lows for the past eight days. That’s a sign of much-needed stabilization, and if it holds, X could be aiming to close the huge gap above.

Am I calling for a monster rally from here? Absolutely not. But I am saying that I believe the worst is in for U.S. Steel.

My thesis is simple. Donald Trump has promised infrastructure spending, and whether you agree with him or not, he’s starting to pile up a few policy “wins,” including pulling the U.S. out of the Paris Climate Accord. So infrastructure spending could still be in the cars.

Meanwhile, the recent dip will hold as the low for the next few months. That being the case, I want to generate income in X stock by selling downside risk against fears that U.S. stock will keep plumbing new lows. I’ll do this by identifying levels of support where shares would catch a bid on the dip.

U.S. Steel’s fundamentals remain unchanged. In the absence of profits, I deem the price to book as reasonable. Furthermore, analyst expectations are mostly concentrated at the “Hold” level. Experts don’t expect much of it. This lowers the chance of negative headlines concerning downgrades of X stock.

There is potential technical upside around $22 per share, too. If breached upward, it could invite momentum buyers to start something impressive. But since that area has been pivotal, bears are not likely to give it up without a fight.

How to Trade X Stock

The trade: Sell the Jul $18 put and collect 65 cents per contract. Here, I only have a 70% theoretical chance of success. But it is a calculated risk. I am selling risk against the recent dip. If shares fall below $17.35, I’ll own them, and I’ll start to accrue losses any lower than that.

Selling naked puts carries open-ended risk, and that doesn’t suit all investors. To moderate the exposure, I could use spreads instead.

The alternate: Sell the $18/$17 credit put spread, which carries limited risk. But the potential 25% yield on X stock compares much more favorably to risking more than $20 per share to buy U.S. Steel outright. In that situation, I would need shares to rally 25% just to match the performance of the spread.

Selling options is risky business, so only risk what you’re willing to lose.

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.