TRU-SENTIMENT · DeltaNeutral
ALGM Trading Analysis - 09/22/2026 10:27 AM — TRU-SENTIMENT
Options chain · Stock chart · Baseline chart
ALGM (Allegro MicroSystems, Inc. Common Stock) at $35.48. True Sentiment Bearish, delta 40-60 call 24% / put 76%, call $3,420 vs put $10,840. RSI 50.0.
- Symbol
- ALGM
- Price
- $35.48
- Article bias (separate from True Sentiment)
- bearish
- Conviction
- medium
- Published
- 2026-09-22 10:27:00 ET
- Author
- DeltaNeutral staff
TRUE SENTIMENT ANALYSIS (DELTA 40-60 OPTIONS)
True Sentiment Analysis (Delta 40-60 Options):Overall options flow sentiment: Bearish
Call vs Put dollar volume:
| Call Dollar Volume | Put Dollar Volume |
|---|---|
| $3,420 | $10,840 |
The options flow sentiment is bearish, indicating that traders are expecting the stock price to drop.
Key Statistics: ALGM
Fundamental Snapshot
Valuation
| P/E (Trailing) | 591.67 |
| P/E (Forward) | N/A |
| PEG Ratio | N/A |
| Price/Book | 20.56 |
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 volatility in the market, with a recent price drop due to concerns over the tech sector.
- The company has been investing heavily in its 5G infrastructure, which could be a potential growth driver.
- There have been reports of increased institutional buying activity in ALGM, which could indicate a bullish sentiment.
These headlines suggest that ALGM is experiencing a mix of both positive and negative sentiment, with potential growth drivers and concerns over the tech sector.
Fundamental Analysis:
Based on the provided fundamentals data:
- Revenue: $945,934,000
- Trailing EPS: $0.06
- Trailing P/E: 591.67
- Price-to-Book: 20.56
- Debt-to-Equity: 0.29
- Return on Equity (ROE): 0.01
- Gross Margins: 0.47
- Operating Margins: 0.05
- Profit Margins: 0.02
The fundamentals suggest that ALGM has a high P/E ratio, which may indicate overvaluation. However, the company's revenue and gross margins are strong, and the debt-to-equity ratio is relatively low.
Current Market Position:
Current price: $35.46
Recent price action: The stock has been trading in a range with a recent price drop.
Key support and resistance levels:
| Level | Price |
|---|---|
| Support | $35.00 |
| Resistance | $40.00 |
Intraday momentum and trends: The stock is showing a neutral intraday trend.
Technical Analysis:
SMA trends:
| SMA | Price |
|---|---|
| 5-day SMA | $34.24 |
| 20-day SMA | $35.46 |
| 50-day SMA | $40.47 |
RSI: 49.95
MACD: -1.96
Bollinger Bands: The stock is trading near the middle band.
30-day high/low: The stock is trading near the lower end of its 30-day range.
True Sentiment Analysis (Delta 40-60 Options):
Overall options flow sentiment: Bearish
Call vs Put dollar volume:
| Call Dollar Volume | Put Dollar Volume |
|---|---|
| $3,420 | $10,840 |
The options flow sentiment is bearish, indicating that traders are expecting the stock price to drop.
Key Price Levels:
Support: $35.00
Resistance: $40.00
Entry: $35.50
Target: $45.00
Stop Loss: $32.00
25-Day Price Forecast:
ALGM is projected for $33.40 to $36.90
The forecast is based on the current technical trends, momentum, and indicators.
Defined Risk Strategy Recommendations:
Based on the price forecast, the following defined risk strategies are recommended:
- Bull Call Spread: Buy 1 $35.00 call and sell 1 $37.50 call
- Bear Put Spread: Buy 1 $35.00 put and sell 1 $32.50 put
- Iron Condor: Sell 1 $35.00 call and buy 1 $37.50 call, sell 1 $32.50 put and buy 1 $30.00 put
These strategies align with the projected price range and offer a defined risk-reward profile.
Risk Factors:
Technical warning signs:
- RSI divergence
- MACD bearish crossover
Sentiment divergences:
- Options flow sentiment vs price action
Volatility and ATR considerations:
- High volatility could impact the strategy performance
Summary & Conviction Level:
Overall bias: Bearish
Conviction level: Medium
One-line trade idea: Consider a bearish options strategy given the bearish sentiment and technical indicators.
View ALGM Options Chain