biotech bo fan za, it's good news for our friend mike koe. here's why.ions action," it's how we trade like scientific geniuss, rick less so we can make more. that's just what mike did with his bullish bet on biotech. he looked at the biotech etf under the microscope and fixed it was going higher, one shares would cost more than $20,000. >> what would you little maniacs like to do first? >> well, for starters, how about spending less? for a different bullish bet, he sold the july put for a $10 credit. notice shares stay at about 235, he gets to keep owl u all that cash. pike sees profits as long lo as the sales are above 225 at july expiration, below that, he could run into big trouble. that's because by selling that put, peek could be forced to pay $235 for shares of the ibb, even if they fall all the way to zero. >> so what do we do? >> well to define his risk, meek then bought the july 225 put for $6 and created his bull put spread. he did something else, he put the odds in his favor and here's how. between the ten bucks he checked by selling the highe

mike koe, aka, the professor, is breaking that down for you.we need to know interest this is what will happen. we will see adjustments to the options contracts. let's start off with a simple example and assume pre-split you own one january 700 strike call. we now it will be a 17 for 1 split. what you need to do is take the number of contracts you have, that's nice writing, multiply that by seven. one times seven, seven contracts. the streak is also going to be adju adjusted. 700 divided by seven, 100. if you own one january 700 strike call before the split, after the split, easy, seven january 100 strike calls, it's gets more convoluted when you deal with the strikes that aren't very di visible, if you own one, will you have seven contracts, you need to divide that by seven. >> that gets to 92.ex-. wound u rond it to two decimals, seven, january, into strike calls. the premium will be the same. you take however they are trading for, divide them by seven all else equal come monday. >> is there a magic to the 1700 or 14u6789 post split? >> there