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Dow trade victim 3M is doing something it hasn't done since the financial crisis

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Here's how to play the 3M sell-off

The U.S.-China trade war has battered 3M this quarter.

The industrials giant, caught in the tariff back-and-forth, has plummeted 23% since the beginning of April in the worst Dow stock performance of the second quarter.

Those losses could be setting it up for a pop, said Matt Maley, equity strategist at Miller Tabak.

"On a technical basis, it is very, very oversold," Maley said Thursday on CNBC's "Trading Nation." "You look at its daily chart, its RSI has got down to a level that has usually been followed by pretty sharp bounces. It's also at a 20% discount to its 200-day moving average. You have to go back to the 2009 crisis lows to see that kind of a discount."

The relative strength index for 3M has fallen to 28 this month – any reading below 30 typically signals oversold conditions.

"This is not a stock I'd want to be selling here, shorting here. If you want to buy it, it's really more for a short-term flip but I think you'll see a good enough bounce so if you want to act on the sell-side, you'll be able to do it at higher prices," said Maley.

Boris Schlossberg, managing director of FX strategy at BK Asset Management, said investors should steer clear of the stock.

"3M has been a disaster even before the China trade talks because essentially it's had no growth across its business lines," said Schlossberg. "Really the only question right now is a valuation play and the question there is whether the dividend stream remains secure. For now, it does remain relatively secure but it's by no means a slam dunk."

3M yields 3.6%, above the average 2% dividend yield on the S&P 500. It has had steady dividend growth for six decades.

"I'm not a lover of the stock. I don't think there's going to be a serious bounce here anytime soon. If you want to buy a long-term position at a good value proposition, probably the best way to do it would be selling puts at a lower price than it is now," said Schlossberg.

He recommends selling 150 out-of-the-money puts. 3M would need to fall 6% to get to that level.