NL 25 - QJ vs loose opponent

[reemas]

Opponent was about 51/14/.7. I had been about 11.0/11.0 after 30-40 hands at the table. I picked up QJo in MP.

Poker Stars, $0.10/$0.25 NL Hold'em Cash Game, 6 Players

BTN: $23.95
SB: $23.65
BB: $37.40
UTG: $4.10
Hero (MP): $37.95
CO: $8.65

Pre-Flop: J[img]/images/graemlins/diamond.gif[/img] Q[img]/images/graemlins/heart.gif[/img] dealt to Hero (MP)
UTG folds, <font color="red">Hero raises to $0.80</font>, CO calls $0.80, BTN folds, SB calls $0.70, BB folds

Flop: ($2.65) 8[img]/images/graemlins/club.gif[/img] Q[img]/images/graemlins/spade.gif[/img] 3[img]/images/graemlins/heart.gif[/img] (3 Players)
SB checks, <font color="red">Hero bets $2</font>, <font color="red">CO raises to $4</font>, SB folds, <font color="red">Hero ???</font>

How to play at this point?