BRK.B Options Signal Bullish Bias: Key Strike Levels and Block Trades Point to Strategic Entry Zones

• BRK.B trades at $499.03, down 0.18% from its open, with Bollinger Bands hinting at a $489.77–$515.29 range.
• Call open interest dominates next Friday’s options chain, with 4,620 contracts at the $505 strike—double the nearest put volume.
• Massive block trades in September 2025 puts ($520–$530 strikes) suggest institutional hedging, despite recent bullish technicals.

Here’s the takeaway: BRK.B shows upside potential in the short term but faces structural risks below $497.23. The options market is pricing in a bullish bias, yet hidden bearish bets from block traders add complexity. Let’s break it down.

Bullish Calls Stack Up, But Puts Tell a Different Story

Next Friday’s options chain is skewed toward calls, with the $505 strike (BRKB20260102C505) leading at 4,620 open contracts. That’s nearly double the volume of the top put at $497.5 (BRKB20260102P4975). Think of it like a seesaw: retail and institutional players are leaning into a rally above $504.29 (200D support/resistance level), but the put activity below $490 acts as a safety net for bears.

But don’t ignore the block trades. Over 1,400 contracts in deep-out-of-the-money September 2025 puts ($520–$530 strikes) moved recently, even as the stock traded well above those levels. It’s the financial markets version of buying insurance—big players are hedging against a rare but plausible downturn beyond Christmas.

Valuation Math Backs the Bull Case

Recent news pegs BRK.B’s intrinsic value at $763.88 per share using the Excess Returns model. That’s a 34.6% gap from today’s price. Combine that with a 12.85% ROE and analysts projecting steady book value growth, and you’ve got a recipe for long-term optimism. The technicals? They’re mixed. Short-term moving averages (30D at $502.77) are bullish, but the 200D average ($498.16) and RSI (44.46) hint at consolidation.

Trade Ideas: Calls for the Bold, Puts for the Pragmatic

For options traders:

• Aggressive Play: Buy BRKB20260102C505 calls if BRK.B breaks above $504.29. Target $515.29 (Bollinger Upper Band) with a stop below $500.
• Cautious Hedge: Buy BRKB20260102P4975 puts if the stock dips below $497.23 support. Protect against a test of the $489.77 lower band.

For stock buyers:

• Entry: Consider buying near $497.23 if the 200D average holds.
• Targets: First resistance at $504.04, then $515.29. Exit if it falls back below $495.

Volatility on the Horizon

BRK.B sits at a crossroads. The options market is pricing in a bullish breakout, but those September block trades whisper caution. My read? Go with the flow—buy calls for a rally above $504.29—but keep a small put position as insurance. The holidays are here, and markets often surprise when least expected. Stay nimble.