LPTX A Small Cap With Institutional Interest, Buy The Pullback

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I have held some options on this stock. Like all gems, I wish I had more invested. Hindsight is 20/20...

Leap Therapeutics (LPTX) currently presents a strong bullish narrative rooted in recent clinical, technical, and structural catalysts.

Clinical Data and Upcoming Catalysts
LPTX's lead drug, sirexatamab (DKN-01), continues to show promise in Phase 2 DeFianCe results for colorectal cancer, with a 32% higher overall response rate and a 3.5-month increase in progression-free survival for high-DKK1 patients—affirming its clinical relevance and market potential.

The company is poised to present final data at ESMO Congress on October 19, 2025, a major catalyst that has already fueled significant price and volume spikes in anticipation, with the options market reflecting extreme implied volatility as traders price in a potential breakout.

Additional pipeline advancement—most notably, FL-501 moving into clinical trials for cancer cachexia in 2026—offers long-term optionality and diversification of risk.

Technical Setup and Market Dynamics
LPTX has a relatively low float (around 33 million shares), which, combined with a recent influx in average trading volume and a short float of approximately 4.3%, creates a prime setup for outsized moves on positive news or momentum surges.

The stock is trading with aggressive options activity, particularly in November 2025 calls, indicating high market expectations ahead of clinical catalysts and event-driven volatility.

Institutions and funds own over 30% of the float, with notable net inflows over the past 12 months, suggesting smart-money accumulation during periods of weakness.

Structural Improvements and Resilience
Despite historical cash burn and workforce cuts, management has implemented cost-saving initiatives, extending their operational runway amid an improving clinical outlook.

LPTX recently received a compliance extension from Nasdaq until March 2026, removing near-term delisting risk and stabilizing the capital structure

Penafian

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