Micron is a $970 stock.

Go out to the September 18 expiration, 35 days, and pull up the 1300 calls. They're trading for $10. That's 330 points out of the money.

Now go the other way. The 700 puts, 270 points out of the money, closer to the stock than those calls are, and they're trading for four bucks.

Read that again.

The options market is charging you more than double for a crash to the upside than it is for a crash to the downside, on a strike that's further away.

This is what I call trading stupid.

For those of you who don't speak geek, that's an inverted skew, and I built a tool to find them because they don't happen often.

The 25 delta is inverted by five points and the 10 delta by seven. Those are huge numbers.

And before anybody tells me this is an earnings thing, September 18 is before the September 23 report. Don't tell me it's hard to borrow either. I don't want to hear all your crap.

So what does the market know?

Micron ran roughly 912% in twelve months and became a trillion dollar memory company, with revenue tripling and gross margins hitting a record.

High bandwidth memory is sold out and the CEO says he can fill maybe half of what his customers want.

Then look at the analysts. Forty four of them rate it a Strong Buy, and their own average price target sits about 30% below where the stock is trading.

They're bullish and their numbers say it falls.

Meanwhile the options market says a rip to 1300 is twice as likely as a break to 700.

It's not been going up that much lately, has it?

This is where the opportunities start to lie, and it's what I'm going to be trading live next week.

I walked through the whole thing on the weekend update.

→ WATCH IT HERE

To your success,

Don Kaufman