Is the Options Market Predicting a Spike in Allegro MicroSystems (ALGM) Stock?

Company Overview - Allegro MicroSystems, Inc. (ALGM) is currently experiencing significant attention from investors due to high implied volatility in the options market, particularly the June 20, 2025 $12.50 Put option [1] - The company holds a Zacks Rank 2 (Buy) in the Electronics - Semiconductors industry, which is positioned in the Bottom 48% of the Zacks Industry Rank [3] Analyst Insights - Over the past 60 days, one analyst has raised earnings estimates for the current quarter, increasing the Zacks Consensus Estimate from earnings of 7 cents per share to 8 cents per share [3] - The current sentiment among analysts indicates a potential for a significant price movement in Allegro MicroSystems shares, as reflected by the high implied volatility [4] Options Market Dynamics - High implied volatility suggests that investors are anticipating a major price movement, which could be due to an upcoming event that may trigger a rally or sell-off [2] - Options traders often seek to capitalize on high implied volatility by selling premium, aiming for the underlying stock to not move as much as expected by expiration [4]