LightPath Soars 22.66% on Strategic Drone Deals and AI-Driven Momentum – What’s Fueling This Surge?

Summary
• LightPath (LPTH) surges 22.66% intraday, hitting a 52-week high of $6.93
• $8M strategic investment from Ondas and Unusual Machines targets drone optics expansion
• AI-driven connectivity bookings in 2024 totaled $110M, with a $1B pipeline
• Options chain shows explosive activity in October 7.5 calls and March 7.5 puts

LightPath’s stock has erupted on the back of a landmark $8M investment from two leading drone industry players and a surge in AI-driven infrastructure demand. The stock’s 22.66% intraday gain—pushing it to a 52-week high—reflects a perfect storm of strategic partnerships, AI infrastructure tailwinds, and a bullish technical setup. With the company’s BlackDiamond™ glass positioning it as a critical supplier for next-gen drone imaging, investors are scrambling to reprice its growth potential.

Strategic Drone Partnerships and AI Infrastructure Momentum Ignite Rally
LightPath’s explosive move stems from a $8M private placement with Ondas Holdings and Unusual Machines, two leaders in autonomous drone systems. The investment accelerates LightPath’s deployment of uncooled infrared cameras in drones, leveraging its proprietary BlackDiamond™ glass as a cost-effective alternative to Germanium. Additionally, the company’s AI-driven connectivity bookings in 2024—$110M with a $1B pipeline—signal a structural shift in demand for high-bandwidth infrastructure. CEO Sam Rubin emphasized the strategic importance of these partnerships during a recent call, noting their role in expanding drone applications for defense and commercial sectors. The stock’s 52-week high of $6.93 aligns with its intraday peak, suggesting a breakout from long-term resistance.

Options and Technicals Signal High-Volatility Play: Key Calls and Puts to Watch
• Kline pattern: Short-term bullish trend, long-term bullish
• RSI: 69.01 (approaching overbought)
• MACD: 0.499978 (bullish divergence from signal line 0.502034)
• Bollinger Bands: Price at upper band (6.37), far above middle band (4.81)
• 200D MA: 2.898 (price at 6.73, 129% above)

LightPath’s technicals scream momentum. The stock has pierced its 52-week high and sits 129% above its 200-day average, with RSI nearing overbought territory. The options chain reflects this volatility: the LPTH20251017C7.5 call (October 17, 7.5 strike) and LPTH20260320P7.5 put (March 20, 7.5 strike) stand out. The October call has 139% implied volatility, 7.94% leverage ratio, and a delta of 0.486, indicating strong directional bias. The March put, with 111.76% IV and a delta of -0.384, offers downside protection.

LPTH20251017C7.5:
• Code: LPTH20251017C7.5
• Type: Call
• Strike: $7.50
• Expiration: 2025-10-17
• IV: 139.00% (high volatility)
• Leverage: 7.94% (strong gearing)
• Delta: 0.486 (moderate directional exposure)
• Theta: -0.020035 (moderate time decay)
• Gamma: 0.141329 (high sensitivity to price moves)
• Turnover: 1,609 (liquid)

LPTH20260320P7.5:
• Code: LPTH20260320P7.5
• Type: Put
• Strike: $7.50
• Expiration: 2026-03-20
• IV: 111.76% (elevated volatility)
• Leverage: 2.70% (moderate gearing)
• Delta: -0.384 (moderate downside bias)
• Theta: -0.004410 (slow time decay)
• Gamma: 0.070753 (moderate sensitivity)
• Turnover: 1,120 (liquid)

Under a 5% upside scenario (targeting $7.07), the October 7.5 call would yield max(0, 7.07 - 7.5) = $0.00 (strike not reached). However, the March 7.5 put would see max(0, 7.5 - 7.07) = $0.43. Aggressive bulls should prioritize the October call for short-term exposure, while the March put offers a hedge against a potential pullback. Aggressive bulls may consider LPTH20251017C7.5 into a breakout above $7.00.

Backtest LightPath Stock Performance
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Bullish Momentum Unlikely to Subside – Position for Next-Stage Growth
LightPath’s rally is underpinned by structural demand from AI infrastructure and drone imaging, with technicals reinforcing a high-conviction trade. The stock’s 52-week high of $6.93 and 200-day average of $2.898 suggest a multi-bagger trajectory if the current momentum holds. While the sector leader LUMN (Lumen Technologies) fell 3.55%, LPTH’s divergence highlights its unique positioning in the AI and drone value chains. Investors should hold longs into the $6.93 52-week high test and consider the October 7.5 call for a leveraged play. Watch for a $7.00 breakout or a pullback to the 4.81 Bollinger middle band.