TRU-SENTIMENT · DeltaNeutral
ALGM Trading Analysis - 09/21/2026 04:31 PM — TRU-SENTIMENT
Options chain · Stock chart · Baseline chart
ALGM (Allegro MicroSystems, Inc. Common Stock) at $35.50. True Sentiment Bullish, delta 40-60 call 100% / put 0%, call $2,652,155 vs put $3,790. RSI 46.3.
- Symbol
- ALGM
- Price
- $35.50
- Article bias (separate from True Sentiment)
- bullish
- Conviction
- medium
- Published
- 2026-09-21 16:31:00 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: 99.9% calls, 0.1% puts
The options sentiment is strongly bullish, indicating near-term positive expectations.
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 announces partnership with major tech firm to expand its connectivity solutions.
- ALGM reports strong quarterly earnings, beating analyst expectations.
- ALGM's CEO discusses future growth plans and market trends in a recent interview.
These headlines suggest positive developments for ALGM, potentially impacting its stock performance.
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
- Gross Margins: 47.18%
- Operating Margins: 4.94%
- Profit Margins: 1.52%
The fundamentals indicate a high P/E ratio, which may suggest overvaluation. However, the company's revenue and profit margins are substantial.
Current Market Position:
Current price: $35.50
Recent price action shows a slight increase, with a current uptrend.
Key support levels: $35.00, $32.81 (Bollinger Band lower limit)
Key resistance levels: $38.13 (Bollinger Band upper limit), $40.78 (50-day SMA)
Technical Analysis:
SMA trends:
- 5-day SMA: $33.80
- 20-day SMA: $35.47
- 50-day SMA: $40.78
RSI (14): 46.28, indicating neutral momentum.
MACD: -2.15, signal: -1.72, histogram: -0.43, indicating a bearish signal.
Bollinger Bands: Middle: $35.47, Upper: $38.13, Lower: $32.81
The technical indicators show mixed signals, with RSI neutral and MACD bearish.
True Sentiment Analysis (Delta 40-60 Options):
Overall options flow sentiment: Bullish
Call vs Put dollar volume: 99.9% calls, 0.1% puts
The options sentiment is strongly bullish, indicating near-term positive expectations.
Key Price Levels:
Support levels: $35.00, $32.81
Resistance levels: $38.13, $40.78
25-Day Price Forecast:
ALGM is projected for $37.50 to $42.00
Based on current SMA trends, RSI momentum, MACD signals, and recent volatility (ATR), the stock is expected to move within this range.
Defined Risk Strategy Recommendations:
Based on the price forecast, recommended strategies include:
- Bull Call Spread: Buy $35.0 call, sell $40.0 call
- Iron Condor: Sell $35.0 put, buy $30.0 put, sell $40.0 call, buy $45.0 call
- Protective Put: Buy $35.0 put
These strategies align with the bullish sentiment and projected price range.
Risk Factors:
Technical warning signs: MACD bearish signal
Sentiment divergences: None
Volatility: Recent ATR is 1.62
Any unexpected earnings or market trends could invalidate the thesis.
Summary & Conviction Level:
Overall bias: Bullish
Conviction level: Medium
One-line trade idea: ALGM shows bullish momentum with strong institutional buying.
View ALGM Options Chain