Leap Therapeutics Soars 31.65%: A Strategic Shake-Up Ignites Biotech Hope?

Summary
• Leap Therapeutics (LPTX) surges 31.65% intraday to $0.3207, defying a 52-week low of $0.2223.
• Company announces 75% workforce reduction and strategic alternatives review amid $16.6M Q2 net loss.
• Positive Phase 2 DeFianCe trial data for sirexatamab in colorectal cancer fuels investor optimism.

Leap Therapeutics’ stock has erupted on August 15, 2025, with a 31.65% intraday surge to $0.3207, driven by a strategic overhaul and clinical progress. The biotech firm’s Q2 2025 report highlights aggressive cost-cutting, a 75% workforce reduction, and updated data from its DeFianCe study. Traders are weighing whether these moves can reverse the stock’s 88.88% YTD decline and unlock value in a cash-strapped pipeline.

Strategic Restructuring and Clinical Progress Drive LPTX Surge
Leap Therapeutics’ 31.65% intraday rally stems from a dual catalyst: aggressive cost-cutting and clinical validation. The company slashed 75% of its workforce, reducing Q2 R&D expenses by 41.3% to $10.5M and G&A costs by 47.1% to $1.8M. Simultaneously, updated DeFianCe trial data showed sirexatamab’s statistically significant improvement in ORR and PFS for colorectal cancer patients with high DKK1 levels. These moves signal a pivot from operational burn to value preservation, enticing investors to bet on strategic alternatives or partnership potential.

Options and ETFs for Navigating LPTX's Volatility
• RSI: 28.91 (oversold)
• MACD: -0.0107 (bearish), Signal Line: -0.0056 (neutral)
• Bollinger Bands: Upper $0.3836, Middle $0.3295, Lower $0.2754
• 200-Day MA: $1.2157 (far above current price)

LPTX’s technicals suggest a short-term bounce from oversold RSI levels, but long-term bearish trends persist. Key support/resistance clusters at $0.3386–$0.3410 (30D) and $0.3309–$0.4183 (200D) define critical levels. Aggressive bulls may target a breakout above $0.3836 (Bollinger Upper Band) for a potential 20% gain, while bears should watch for a breakdown below $0.2754 (Lower Band).

Top Options:
• LPTX20250815C00035000 (Call, $0.35 strike, Aug 15): IV 65%, Delta 0.45, Theta 0.03, Gamma 0.008. High leverage (50%+ potential) if price closes above $0.35.
• LPTX20250815P00025000 (Put, $0.25 strike, Aug 15): IV 70%, Delta -0.35, Theta 0.025, Gamma 0.007. Hedge downside risk with moderate IV.

Payoff Estimation: A 5% upside to $0.3367 would yield $0.0067 profit per share on the $0.35 call. The $0.25 put offers $0.07 profit if price drops below $0.25. Traders should prioritize the call for high leverage and the put for downside protection.

Backtest Leap Therapeutics Stock Performance
The backtest of LPTX's performance after a 32% intraday surge reveals mixed results. While the stock experienced a positive maximum return of 0.20% on the day of the surge, the broader impact over 3, 10, and 30 days was negative, with returns of -0.28%, -0.91%, and -4.28%, respectively. This suggests that while short-term gains can be achieved by betting on such large intraday movements, the stock's price tended to decline in the medium to long term following the surge.

Act Now: LPTX's Strategic Pivot Could Fuel a Biotech Breakout
Leap Therapeutics’ 31.65% surge reflects a calculated pivot from burn to value preservation, but sustainability hinges on its ability to secure partnerships or strategic alternatives. Investors should monitor the $0.3295 (200D MA) and $0.3836 (Bollinger Upper) levels, with Amgen (AMGN)’s 0.75% rise signaling broader biotech resilience. Aggressive traders may consider the $0.35 call for a high-leverage play, while hedging with the $0.25 put. Watch for a $0.35 close to validate the breakout or a breakdown below $0.2754 to trigger further declines.