ALGM Forecast + Trading Strategies


Bullish Case: ALGM could see a significant uptick as its technology gains traction in emerging markets, complemented by the higher implied volatility suggesting market anticipation of movement. Improved financial metrics may enhance investor confidence.


Bearish Case: Continued insider selling and high market uncertainty suggest further declines may eclipse any potential bullish momentum. Lower trading volumes also indicate waning investor interest, adding pressure on stock performance.


Potential Outcomes:

1. (40%) ALGM rebounds due to strong tech adoption.

2. (35%) Stagnation driven by dual pressures of seller dominance and market skepticism.

3. (25%) Further declines from institutional selling and weak earnings.


Trading Oracle: Consider executing a bearish credit spread by selling the $30 call and buying the $32.50 call, capitalizing on the higher implied volatility while limiting risk. With odds suggesting a 69% potential profit, this strategy emphasizes favorable risk/reward despite the uncertain outlook.


July 24, 2024


Allegro Microsystems Forecast

ALGM      Allegro Microsystems











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LSCC Forecast + Options Trading Strategies   LSCC  Lattice Semiconductor (0.78)



Uncorrelated Assets

Assets with little price relationship to ALGM



AB Forecast + Options Trading Strategies   AB  AllianceBernstein (0.0)


SHAK Forecast + Options Trading Strategies   SHAK  Shake Shack (-0.0)


ORCL Forecast + Options Trading Strategies   ORCL  Oracle (-0.0)


MS Forecast + Options Trading Strategies   MS  Morgan Stanley (0.0)


NICE Forecast + Options Trading Strategies   NICE  NICE (-0.0)



Anticorrelated Assets

Assets that tend to move strongly against ALGM



GPS Forecast + Options Trading Strategies   GPS  Gap (-0.64)


PGR Forecast + Options Trading Strategies   PGR  Progressive (-0.64)


CCJ Forecast + Options Trading Strategies   CCJ  Cameco (-0.65)


UVIX Forecast + Options Trading Strategies   UVIX  VS Trust - 2x Long VIX Futures (-0.65)


AFL Forecast + Options Trading Strategies   AFL  Aflac (-0.68)





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