Edwards Lifesciences Corporation (EW): A Bull Case Theory 

We came across a bullish thesis on Edwards Lifesciences Corporation on R. Dennis’s Substack by OppCost. In this article, we will summarize the bulls’ thesis on EW. Edwards Lifesciences Corporation’s share was trading at $81.49 as of January 29th. EW’s trailing and forward P/E were 35.90 and 28.82 respectively according to Yahoo Finance.

Edwards Lifesciences Corporation provides products and technologies to treat advanced cardiovascular diseases in the United States, Europe, Japan, and internationally. EW has recently seen a substantial institutional order flow, highlighting a high-conviction “Risk Reversal” trade that signals confidence in a Q1 2026 fundamental breakout. The trade involves buying 2,600 March 20, 2026, $92.50 calls while simultaneously selling 2,600 $82.50 puts, effectively creating a near-zero-cost upside position.

This sophisticated structure exploits the pronounced options volatility skew, where downside puts are overpriced relative to upside calls, allowing the institutional trader to fund the call purchase by selling expensive puts. The $82.50 strike acts as a calculated floor, positioned just below the 200-day moving average at $83.56, reflecting confidence that algorithmic buying and institutional support will absorb any near-term downside. Even in the unlikely event of a deeper drop, the trade signals willingness to acquire approximately $21 million worth of stock at a discounted entry.

The timing of the March expiration aligns with three key catalysts: the J.P. Morgan Healthcare Conference in January 2026, Q4 earnings and 2026 guidance in early February, and anticipated FDA approval of the SAPIEN M3 Transcatheter Mitral Valve Replacement system in Q1 2026.

These events provide the potential for rapid upside, particularly the regulatory approval, which could unlock a multibillion-dollar market opportunity and drive the $92.50 calls deep into the money. The trade is further supported by Edwards’ strong Transcatheter Mitral and Tricuspid Therapies unit growing at 57% year-over-year, ongoing institutional accumulation, and a $500 million accelerated share repurchase, creating a structural valuation floor.

Overall, this institutional positioning offers an asymmetric opportunity: high probability downside protection, substantial upside potential, and capital-efficient exposure. The whale’s activity suggests Edwards is likely to defend $82 while targeting $100 in Q1 2026, presenting a compelling trade for investors seeking alignment with smart money flows.

Previously we covered a bullish thesis on Edwards Lifesciences Corporation (EW) by Natan in January 2025, highlighting its TAVR leadership, TMTT expansion, strong margins, and strategic capital allocation. The stock has appreciated approximately 11.29% since our coverage as growth initiatives progressed. OppCost shares a similar view but emphasizes institutional “smart money” flows and a high-conviction risk reversal trade signaling a potential Q1 2026 breakout.

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Disclosure: None.