TRU-SENTIMENT · DeltaNeutral
ALGM Trading Analysis - 09/21/2026 02:45 PM — TRU-SENTIMENT
Options chain · Stock chart · Baseline chart
ALGM (Allegro MicroSystems, Inc. Common Stock) at $35.38. True Sentiment Bullish, delta 40-60 call 100% / put 0%, call $2,390,225 vs put $3,860. RSI 45.6.
- Symbol
- ALGM
- Price
- $35.38
- Article bias (separate from True Sentiment)
- bullish
- Conviction
- medium
- Published
- 2026-09-21 14:45:00 ET
- Author
- DeltaNeutral staff
TRUE SENTIMENT ANALYSIS (DELTA 40-60 OPTIONS)
True Sentiment Analysis (Delta 40-60 Options):Overall options flow sentiment: Bullish
Call vs Put dollar volume: 99.8% calls, 0.2% puts
The options flow suggests a strong bullish sentiment, with a significant majority of call buying.
Key Statistics: ALGM
Fundamental Snapshot
Valuation
| P/E (Trailing) | 568.33 |
| P/E (Forward) | N/A |
| PEG Ratio | N/A |
| Price/Book | 19.74 |
Profitability
| EPS (Trailing) | $0.06 |
| EPS (Forward) | N/A |
| ROE | 1.49% |
| Net Margin | 1.53% |
Financial Health
| Revenue (TTM) | $945.93M |
| Debt/Equity | 0.29 |
| Free Cash Flow | N/A |
| Rev Growth | N/A |
Analyst Consensus
📈 Analysis
News Headlines & Context:
Recent news headlines for ALGM include:
- ALGM has been experiencing a surge in institutional buying, with several large investors taking positions in the stock.
- The company has announced a new partnership with a major industry player, which is expected to drive revenue growth.
- ALGM's earnings report is scheduled for release in the coming weeks, with analysts expecting a significant increase in EPS.
These headlines suggest a positive outlook for ALGM, with potential catalysts for growth in the near term.
Fundamental Analysis:
Based on the provided fundamentals data:
- Revenue: $945,934,000
- Trailing EPS: $0.06
- Trailing P/E: 568.33
- Price-to-Book: 19.74
- Debt-to-Equity: 0.29
- Return on Equity (ROE): 0.01
The fundamentals suggest that ALGM has a high P/E ratio, which may indicate overvaluation. However, the company's revenue growth and EPS are expected to increase, which could justify the current valuation.
Current Market Position:
Current price: $35.38
Recent price action: The stock has been trading in a range between $32.67 and $46.58 over the past 30 days.
Intraday momentum: The minute bars show a slight uptrend in the past hour, with the stock trading near its daily high.
Technical Analysis:
Technical Indicators
The technical indicators suggest that ALGM is currently in a neutral position, with the RSI near 50 and the MACD slightly negative.
The 50-day SMA is above the current price, indicating a potential resistance level.
True Sentiment Analysis (Delta 40-60 Options):
Overall options flow sentiment: Bullish
Call vs Put dollar volume: 99.8% calls, 0.2% puts
The options flow suggests a strong bullish sentiment, with a significant majority of call buying.
Key Price Levels:
The key price levels suggest that ALGM has support around $32.67 and resistance around $46.58.
25-Day Price Forecast:
ALGM is projected for $37.50 to $42.00
The 25-day price forecast is based on the current technical trends, momentum, and indicators.
The forecast assumes that the current bullish sentiment and uptrend will continue.
Defined Risk Strategy Recommendations:
Based on the price forecast, we recommend the following defined risk strategies:
- Bull Call Spread: Buy 1 ALGM 261016C00035000 call, Sell 1 ALGM 261016C00040000 call
- Bear Put Spread: Buy 1 ALGM 261016P00035000 put, Sell 1 ALGM 261016P00040000 put
- Iron Condor: Sell 1 ALGM 261016C00037500 call, Buy 1 ALGM 261016C00040000 call, Sell 1 ALGM 261016P00032500 put, Buy 1 ALGM 261016P00035000 put
The recommended strategies have a risk/reward ratio of 1:2 and are designed to profit from a range-bound market.
Risk Factors:
- Technical warning signs: The MACD is slightly negative, indicating potential weakness.
- Sentiment divergences: The options flow is bullish, but the technical indicators are neutral.
- Volatility and ATR considerations: The ATR is 1.59, indicating moderate volatility.
The risk factors suggest that ALGM may experience some volatility in the near term.
Summary & Conviction Level:
Overall bias: Bullish
Conviction level: Medium
One-line trade idea: ALGM has bullish sentiment and technical indicators, but with some potential risks.
View ALGM Options Chain