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A True Best Buy

There are 52-inch plasmas, iPhones , and there's protection on your money. And if you we're watching Options Action last Friday, you learned how to buy the last item for nearly nothing.

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Oliver Quillia for cnbc.com

Thinking Best Buy shares could be anything but, Dan Nathan of JAK Securities recommended a calendar collar, where against a long position, he bought the December 41-strike put for $0.87 cents, and sold the January 45-strike call against it to finance the purchase.

By selling that longer-dated call, Dan was able to collect more money to further offset the cost of the near-dated put.

Good thing, because Best Buy stock tumbled 15% today on terrible earnings.

So now what?

"Sell the whole thing," said Nathan. "Clearly the fundamental picture has changed and there may be no reason to own the stock near-term. But at least by owning the collar, you offset the pain."

Nathan's trade cost $0.10 to put on and can now be sold back for about $5.35.

And that is a true best buy.

Watch Options Action on CNBC Fridays 5:30pm ET, Saturdays 6a ET and on Sundays 6a ET

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