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

• Current Price Action: BRK.B trades at $497.59, down 0.75% from its 501.34 close, with intraday support at $497.50 and resistance near $501.56.
• Options Imbalance: Call open interest (OI) dominates at strikes like $502.5 and $505, while puts pile up at $460 and $495, hinting at a bullish skew.
• Block Trade Alert: Massive put block trades at $520–$530 (expiring Sept 2025) suggest institutional hedging or position unwinding.

Here’s the takeaway: BRK.B’s options market is leaning bullish, but the stock’s technicals and news flow add layers of nuance. Let’s break it down.Bullish Skew in OTM Options and Whale Moves

BRK.B’s options chain tells a story of cautious optimism. For this Friday’s expiration, call OI peaks at $502.5 (1,542 contracts) and $505 (1,347), both above the current price. These strikes act like a "soft ceiling"—traders are betting on a rebound to 500–510. Meanwhile, puts at $460 (1,445 OI) and $495 (866 OI) show fear of a deeper pullback, but the put/call ratio of 0.53 (favoring calls) suggests the crowd isn’t panicking.

The real drama? Block trades. Over 1,800 puts at $520–$530 (Sept 2025) were swapped recently, totaling $6.3M in turnover. Think of it like a ship dropping anchor: big players are hedging against a hypothetical 5% drop in 6 months. It’s not a bearish signal per se, but a reminder that volatility isn’t dead.

News Flow: Buffett’s Exit and Stock Concentration

Warren Buffett’s departure and Berkshire’s heavy bets in just five stocks (like Apple and Bank of America) are top-of-mind. On one hand, this creates "vacuum risk"—will Greg Abel replicate Buffett’s magic? On the other, the recent $24B selling spree in underperformers could free up capital for smarter plays.

The market’s mixed reaction makes sense. BRK.B’s price hasn’t surged post-announcement, but it’s holding above its 200D MA ($498.21). That’s a quiet vote of confidence. If Abel can prove the succession plan works, the $500–510 range could become a magnet. But watch for profit-taking if the 50D MA ($503.03) breaks.

Actionable Trades: Calls, Puts, and Precision Entries

For options traders, the next Friday’s $505 call (OI: 6,110) is a standout. At $497.59, it’s just 1.5% out of the money but sits near the 30D MA. If BRK.B rebounds to 500–502, this strike could see explosive gamma. Pair it with a short put at $497.5 (OI: 1,131) for a collar strategy—protecting downside while riding a potential bounce.

Stock buyers should eye two zones:

• Entry near $497.50 (current intraday low) if the Bollinger Band support at $489.63 holds. Target $504–505 (30D MA resistance).
• Breakout play: If BRK.B closes above $501.56 (intraday high), push entry to $503.50 with a stop below $500.50.

Bearish hedge: A put spread at $495–$480 (next Friday’s OI: 393) could profit if sentiment shifts, but only if the 200D MA breaks cleanly.Volatility on the Horizon

BRK.B isn’t screaming for a breakout, but it’s not begging for a breakdown either. The options market’s bullish skew and technical support at $497.50 suggest a short-term rebound is more likely than a freefall. However, Buffett’s exit and the stock’s heavy concentration in a few names mean patience is key.

Bottom line: This isn’t a "buy the dip" moment—it’s a "wait for the dip to confirm" moment. If BRK.B holds its ground this week, the $505 call and $497.50 support could become your best friends. But if the 200D MA cracks, those puts at $495 might suddenly feel like a lifeline.