ALGM Option Call 17-01-2025 40 Option on Allegro Microsystems

ALGM Stock  USD 21.73  0.25  1.16%   
ALGM Option Call 17-01-2025 40 is a CALL option contract on Allegro Microsystems' common stock with a strick price of 40.0 expiring on 2025-01-17. The contract was last traded on 2024-08-05 at 15:14:28 for $0.18 and, as of today, has 49 days remaining before the expiration. The option is currently trading at a bid price of $0.05, and an ask price of $1.75. The implied volatility as of the 29th of November is 49.0.
  
Call options on Allegro Microsystems give the investor right to buy Allegro Stock at a specified price within a specific period. If Allegro Microsystems' price is above the strike price at expiry, the profit is the current Allegro Microsystems' stock price, minus the strike price and the premium.

Rule 16 of 2025-01-17 Option Contract

The options market is anticipating that Allegro Microsystems will have an average daily up or down price movement of about 0.0895% per day over the life of the option. With Allegro Microsystems trading at USD 21.73, that is roughly USD 0.0195. If you think that the market is fully understating Allegro Microsystems' daily price movement you should consider buying Allegro Microsystems options at that current volatility level of 1.43%. But if you have an opposite viewpoint you should avoid it and even consider selling them.

Out Of The Money Call Option on Allegro Microsystems

An 'Out of The Money' option on Allegro has a strike price that Allegro Stock has yet to reach, meaning the option has no intrinsic value. 'Out of The Money' options are usually less costly than 'In The Money' options, making them more desirable to traders with smaller amounts of capital. Some of the uses for Allegro Microsystems' 'Out of The Money' options include buying the options if you expect a big move in Allegro Microsystems' stock. Since 'Out of The Money' options have a lower up-front cost (i.e., no intrinsic value) than 'In The Money' options, buying it is a reasonable choice.
Call Contract NameALGM Option Call 17-01-2025 40
Expires On2025-01-17
Days Before Expriration49
Last Traded On2024-08-05 15:14:28
Open Interest57
Current Trading Volume1.0
Strike Price40.0
Last Traded At0.18
Current Price Spread0.05 | 1.75
Rule 16 Daily Up or DownUSD 0.0195

Allegro long CALL Option Payoff at expiration

Buying Allegro Microsystems' call option is the simplest of option trades. A call option on Allegro Stock gives investors the right (but not the obligation) to purchase Allegro Microsystems at the given strike price. Therefore Allegro Microsystems' call intrinsic value or payoff at expiration depends on where the Allegro Stock price is relative to the call option strike price. The strike price of 40.0 is the critical point that divides the payoff function into two parts. Below the strike, the payoff chart is constant and negative (the trade is a loss). Above the strike, the payoff line is upward sloping as the option payoff rises in proportion with Allegro Microsystems' price. Finally, at the break-even point of 40.0, the line crosses zero, and trading Allegro becomes profitable.
   Profit   
       Allegro Microsystems Price At Expiration  

Allegro short CALL Option Payoff at expiration

By selling Allegro Microsystems' call option, the investors signals his or her bearish sentiment. A short position in a call option written on Allegro Microsystems will generally make money when the underlying price goes down. Therefore Allegro Microsystems' call intrinsic value or payoff at expiration depends on where the Allegro Stock price is relative to the call option strike price. The strike price of 40.0 is the critical point that divides the payoff function into two parts. Below the strike, the payoff chart is constant and positive (the seller makes a profit). Above the strike, the payoff line is downward sloping as the option payoff drops in proportion to Allegro Microsystems' price. Finally, at the break-even point of 40.0, the line crosses zero, and trading Allegro becomes disadvantageous with no downside limits.
   Profit   
       Allegro Microsystems Price At Expiration  
View All Allegro Microsystems Options

Allegro Microsystems Available Call Options

Allegro Microsystems' option chain is a display of a range of information that helps investors for ways to trade options on Allegro. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Allegro. It also shows strike prices and maturity days for a Allegro Microsystems against a given expiration period. The table below combines all the option information in the form of a chain but before you use it, remember that it entails significant risk and it is not for everyone.
Open IntExpirationCurrent SpreadLast Price
Call
ALGM Option Call 20-12-2024 1502024-12-200.0 - 0.06.0In
Call
ALGM Option Call 20-12-2024 1702024-12-200.0 - 0.04.87In
Call
ALGM Option Call 20-12-2024 2002024-12-200.0 - 0.01.75In
Call
ALGM Option Call 20-12-2024 2202024-12-200.0 - 0.00.65Out
Call
ALGM Option Call 20-12-2024 2502024-12-200.0 - 0.00.05Out
Call
ALGM Option Call 20-12-2024 2702024-12-200.0 - 0.00.05Out
Call
ALGM Option Call 20-12-2024 3002024-12-200.0 - 0.00.05Out
Call
ALGM Option Call 20-12-2024 32902024-12-200.0 - 0.70.2Out
Call
ALGM Option Call 20-12-2024 3502024-12-200.0 - 0.00.05Out
Call
ALGM Option Call 20-12-2024 3702024-12-200.0 - 0.00.25Out
Call
ALGM Option Call 20-12-2024 402492024-12-200.0 - 0.50.09Out
Call
ALGM Option Call 20-12-2024 42162024-12-200.0 - 0.50.15Out
Call
ALGM Option Call 20-12-2024 451742024-12-200.0 - 0.750.18Out
Call
ALGM Option Call 20-12-2024 5002024-12-200.0 - 0.00.15Out
Call
ALGM Option Call 20-12-2024 55652024-12-200.05 - 0.50.21Out
Call
ALGM Option Call 20-12-2024 60402024-12-200.05 - 0.750.47Out
Call
ALGM Option Call 20-12-2024 65172024-12-200.0 - 0.750.17Out
Call
ALGM Option Call 20-12-2024 7002024-12-200.0 - 0.20.05Out
Call
ALGM Option Call 20-12-2024 75892024-12-200.0 - 0.450.2Out

Allegro Microsystems Corporate Management

When determining whether Allegro Microsystems is a strong investment it is important to analyze Allegro Microsystems' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Allegro Microsystems' future performance. For an informed investment choice regarding Allegro Stock, refer to the following important reports:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Allegro Microsystems. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in price.
To learn how to invest in Allegro Stock, please use our How to Invest in Allegro Microsystems guide.
You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Is Semiconductors & Semiconductor Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Allegro Microsystems. If investors know Allegro will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Allegro Microsystems listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.48)
Earnings Share
(0.14)
Revenue Per Share
4.423
Quarterly Revenue Growth
(0.32)
Return On Assets
0.0304
The market value of Allegro Microsystems is measured differently than its book value, which is the value of Allegro that is recorded on the company's balance sheet. Investors also form their own opinion of Allegro Microsystems' value that differs from its market value or its book value, called intrinsic value, which is Allegro Microsystems' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Allegro Microsystems' market value can be influenced by many factors that don't directly affect Allegro Microsystems' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Allegro Microsystems' value and its price as these two are different measures arrived at by different means. Investors typically determine if Allegro Microsystems is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Allegro Microsystems' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.