Edgewise Therapeutics (EWTX) Surges 22.5% on Promising HCM Trial Data: Is This the Catalyst for a Biotech Breakout?

Summary
• Edgewise Therapeutics (EWTX) surges 22.5% intraday, trading at $26.64 after opening at $22.44
• CIRRUS-HCM trial reports no clinically meaningful LVEF drops, differentiating EDG-7500 from cardiac myosin inhibitors
• Interim Part D data shows 70% of participants reached 100mg+ doses, with Phase 3 trials on track for 4Q 2026

Edgewise Therapeutics (EWTX) has ignited a dramatic intraday rally, surging 22.5% to $26.64 as of 4:14 PM EST. The stock’s meteoric rise follows the company’s announcement of positive interim safety results from its CIRRUS-HCM trial, where EDG-7500 demonstrated a favorable safety profile with no meaningful reductions in left ventricular ejection fraction (LVEF). With intraday trading ranging from $22.16 to $27.08, the stock’s volatility underscores investor enthusiasm for the biotech’s potential to redefine HCM treatment.

Positive CIRRUS-HCM Trial Data Sparks EWTX Rally
Edgewise’s 22.5% intraday surge is directly tied to its CIRRUS-HCM trial update, which highlighted EDG-7500’s differentiated safety profile. The drug’s absence of clinically meaningful LVEF reductions—a key concern with competing cardiac myosin inhibitors (CMIs)—has positioned it as a potential best-in-class therapy for hypertrophic cardiomyopathy (HCM). With 70% of Part D participants reaching 100mg+ doses and no atrial fibrillation events observed, the data reinforces EDG-7500’s potential to address unmet needs in HCM treatment. CEO Kevin Koch’s comments on enrollment exceeding year-end goals further amplified optimism, as the company remains on track for Phase 3 trials by late 2026.

Options and ETF Strategies for EWTX's Volatile Move
• RSI: 44.6 (neutral), MACD: 0.38 (bullish), Bollinger Bands: $20.78–$26.28 (current price near upper band)
• 200-day MA: $16.62 (well above), 30-day MA: $23.05 (support near $22.22)

EWTX’s technicals suggest a continuation of its bullish momentum, with the 200-day MA acting as a strong floor. The RSI at 44.6 indicates no overbought conditions, leaving room for further gains. For options, EWTX20260116C25 (call) and EWTX20260116P24 (put) stand out. The call offers a 36.21% price change ratio with a delta of 0.656 and implied volatility of 89.75%, while the put has a -84.38% price change ratio and delta of -0.245. Both contracts exhibit high leverage (8.05% and 35.51%) and liquidity (turnover of 15,173 and 1,765).

EWTX20260116C25: A 25-strike call with 89.75% IV and 36.21% price change ratio offers high leverage for a 5% upside scenario (target price: $28). EWTX20260116P24: A 24-strike put with 69.16% IV and -84.38% price change ratio provides downside protection. Aggressive bulls may consider EWTX20260116C25 into a break above $27.50, while cautious investors might hedge with EWTX20260116P24.

Backtest Edgewise Stock Performance
The backtest of EWTX's performance following a 23% intraday surge from 2022 to the present shows a strategy return of 44.04%, with a benchmark return of 42.97% and an excess return of 1.07%. The strategy has a CAGR of 9.74% and a maximum drawdown of 0.00%, indicating a solid performance relative to the benchmark. However, the high volatility of 78.83% suggests that the strategy may experience significant price fluctuations.

EWTX's Momentum: Position for a Biotech Breakthrough
Edgewise’s 22.5% rally reflects investor confidence in EDG-7500’s potential to disrupt HCM treatment. With Phase 3 trials on track for 4Q 2026 and no meaningful LVEF risks, the stock’s technicals and fundamentals align for further gains. Watch for a breakout above $27.50 or a breakdown below $22.22 to confirm direction. Meanwhile, sector leader Cytokinetics (CYTK) rose 2.43%, signaling broader biotech optimism. Position now with EWTX20260116C25 for upside or EWTX20260116P24 for downside protection—this is a high-conviction trade for 2026.