JPMorgan Chase (NYSE:JPM), for all the wrong reasons, has been in the news lately, having lost $2 billion and perhaps up to $4 billion due to a flawed trading strategy and risk management system. As a result, JPM stock blew up — a very good thing for traders looking to bank some quick cash and income.

The steep decline in JPM stock has increased volatility and therefore increased the value of JPM calls and puts. How rich are these premiums? The stock has stabilized, yet you can sell a May $35 put — which will expire this Friday — and get a 1% return. So in less than three trading days you can beat the annual return on a CD.

Is JPM really stable, and is it worth the risk of being put the stock? In my opinion, yes.

First, when you sell a put, you never have to be put a stock. You can buy back the original position if the stock goes against you and sell the same put, or one with a lower strike price, the next week or the next month. JPM has weekly options and is very liquid so you could do this if the stock dips below the strike price of a put you have sold on JPM.

I am not a big fan of any money center banks, but many investors are — I see the next recession coming. But in fairness to banking bulls, U.S. banks are far better capitalized then their brethren around the world. More importantly, the Fed has shown the willingness to step in when needed — unlike European authorities who insist on stepping in after they are needed. The bottom line is that large money center U.S. banks are fairly risk free from a business perspective, and JPMorgan is the pick of the litter. The quality of management and the size of its capital cushion have dictated how quickly it has acted since blowing up.

Being put the stock at $35 would give you a great asset you could write calls against immediately, and this capital would be generating income weekly or monthly. Just because your capital is tied up in a stock you may not have intended to buy does not mean it cannot generate large amounts of income. If you sell calls against JPM shares and actively manage weekly or monthly positions, you should be able to generate a15% return per year or more.

The bottom line: JPM is still a very good company. And even though JPM stock might be temporarily depressed, there are very rich premiums on JPM options. Consider selling the JPM May $35 puts.

For purposes of disclosure, Michael Shulman does not own shares of JPM. Michael Shulman is editor of Options Income Blue Print. Learn more about trading weekly options in this free short video.