Compass Therapeutics Soars 20.5% on Groundbreaking Clinical Data—What’s Next for the Biotech?

Summary
• Compass Therapeutics (CMPX) surges 20.5% intraday, hitting $3.255 from $2.70
• Clinical updates for tovecimig and CTX-8371 drive optimism
• $101M cash runway into 2027 fuels investor confidence
• Sector peers mixed as biotech sector grapples with regulatory and market shifts

Compass Therapeutics’ stock erupted in late trading on August 11, 2025, surging 20.5% to $3.255 amid blockbuster clinical updates. The biotech’s Phase 2/3 tovecimig trial in biliary tract cancer showed fewer deaths than projected, while CTX-8371’s deep partial responses in lung and breast cancer patients sparked investor frenzy. With $101M in cash and a robust pipeline, CMPX’s rally reflects a perfect storm of clinical progress and financial stability.

Clinical Breakthroughs Ignite Investor Optimism
Compass Therapeutics’ 20.5% intraday surge was catalyzed by its Q2 2025 earnings report and clinical updates. The Phase 2/3 COMPANION-002 trial for tovecimig (DLL4 x VEGF-A bispecific antibody) exceeded expectations, with fewer deaths observed than modeled, hinting at potential survival benefits. Additionally, CTX-8371 (PD-1 x PD-L1 bispecific antibody) demonstrated two deep partial responses in post-checkpoint inhibitor patients, including a 100% tumor burden reduction in non-small cell lung cancer. These data, coupled with $101M in cash reserves, positioned CMPX as a high-conviction play in oncology innovation.

Biotech Sector Mixed as Amgen Trails CMPX’s Rally
While Compass Therapeutics surged, the broader biotech sector remained fragmented. Amgen (AMGN), the sector’s leader, dipped 1.09% amid pricing pressures and regulatory scrutiny. The divergence highlights CMPX’s unique catalysts—clinical-stage breakthroughs versus AMGN’s reliance on established franchises. Investors are pivoting toward high-risk, high-reward biotechs like CMPX, betting on transformative therapies over mature players facing margin compression.

Options and ETFs to Capitalize on CMPX’s Volatility
• MACD: 0.0316 (bullish divergence), Signal Line: 0.0994 (bearish), Histogram: -0.0677 (bearish)
• RSI: 33.63 (oversold), Bollinger Bands: $3.3359 (upper), $3.025 (middle), $2.7141 (lower)
• 200D MA: $2.2474 (far below current price), Support/Resistance: $2.637–$2.6524 (short-term support)

CMPX’s technicals suggest a short-term rebound from oversold RSI levels, but the bearish MACD histogram and 200D MA divergence caution against over-optimism. The stock is trading near its 30D support at $2.637, with a critical test of the $3.3359 upper Bollinger Band ahead. For options traders, the CMPX20250919P3 put and CMPX20251121P3 put stand out:

• CMPX20250919P3: Put option with $3 strike, 87.35% IV, -0.3406 delta, -0.0028 theta, 0.3932 gamma, 25 turnover. High gamma and moderate delta suggest strong sensitivity to price swings, ideal for short-term volatility.
• CMPX20251121P3: Put option with $3 strike, 10.54% IV, -0.0625 delta, -0.000022 theta, 0.6806 gamma, 0 turnover. Low IV and high gamma position it for a potential rebound.

Payoff Estimation: A 5% upside to $3.415 would yield a 13.5% gain on the CMPX20250919P3 put, while the CMPX20251121P3 put could see a 22% gain if CMPX stabilizes above $3. Aggressive bulls may consider the CMPX20250919P3 into a breakout above $3.3359.

Backtest Compass Therapeutics Stock Performance
The 21% intraday surge in Compass Therapeutics (CMPX) on August 11, 2025, had a significant impact on its performance, as evidenced by the following:1. Stock Price Movement: The surge led to a notable increase in CMPX's stock price. For instance, the stock added approximately 21% on the day of the announcement.2. Market Reaction: Despite the positive news, the stock experienced a slight decline of 2.88% in premarket trading following the earnings release. This suggests that while there was initial enthusiasm about the pipeline updates, investors may have had some reservations about the broader financial context, such as the wider-than-expected loss per share.3. Analyst Reactions: Analysts had previously set a price target of $10.00, which represented a premium over the current price. The positive clinical trial updates could potentially lead to higher price targets or more favorable views from analysts.4. Investor Sentiment: The stock's 86% year-to-date gains indicate that investors had already priced in some optimism about CMPX's prospects. The surge may have led to some profit-taking, especially given the lack of current profitability and significant operational losses.5. Long-Term Outlook: The company's guidance for continued EPS losses in the upcoming quarters suggests that the surge may not be reflected in long-term stock performance if the clinical trials do not lead to significant revenue generation.In conclusion, while the 21% intraday surge in CMPX's stock price on August 11, 2025, was a significant event, its impact on the stock's overall performance and future trajectory will depend on various factors, including the company's ability to translate clinical trial success into revenue and the broader market's perception of CMPX's long-term growth potential.

CMPX’s Rally Faces Crucial Junctures—Act Now
Compass Therapeutics’ 20.5% surge is a high-stakes bet on its clinical pipeline, but sustainability hinges on Q1 2026 secondary endpoint data for tovecimig and CTX-8371’s cohort expansion results. The stock’s 52W high of $4.08 remains a distant target, requiring a 25% rally from current levels. Investors should monitor the $3.3359 upper Bollinger Band and $2.7141 lower band for directional clues. Meanwhile, Amgen’s -1.09% drag on the sector underscores the need for CMPX-specific catalysts. For those with a high-risk appetite, the CMPX20250919P3 put offers a leveraged play on near-term volatility. Act now: Watch for a breakout above $3.3359 or a breakdown below $2.7141 to dictate next steps.