BRK.B's Options Signal Bullish Bias: Key Strikes and Block Trades Point to $510 Target

• BRK.B trades at $498.22, down 0.18% with volume surging to 1.58M shares.
• Options open interest shows 22,133 calls at $510 vs. 5,442 puts at $490—hinting at a bullish skew.
• A 700-lot block trade sold $490 puts this Friday, signaling confidence in near-term support.

Here’s the takeaway: BRK.B’s technicals and options data align for a cautious bullish setup, with key resistance at $506 and heavy call open interest pointing to a potential push toward $510. But let’s dig into why this matters for traders today.

Decoding the Options Imbalance: Why $510 and $490 Matter

The options market isn’t whispering—it’s shouting. For Friday’s expiration (Jan 16), the BRKB20260116C510 call has the highest open interest at 22,133 contracts. That’s not random. Think of it as a crowd of traders collectively betting the stock will punch through $510. Meanwhile, the top put at $490 (5,442 OI) acts like a floor: if BRK.B dips below $490, those puts could get exercised, creating a buying catalyst.

But here’s the twist: A massive block trade sold 700 of those $490 puts today. That’s $42,000 in turnover. Why? It suggests institutional players are either hedging or positioning for a rally. They’re saying, "We don’t think this stock is going below $490 anytime soon." Combine that with a put/call ratio of 0.54 (calls dominate), and you’ve got a recipe for upside bias.

No Major News, But Options Tell a Story

There’s no recent headlines to sway sentiment—Berkshire’s been in "wait-and-see" mode. But that’s where options data shines. When fundamentals are quiet, options become the barometer. The heavy call buying at $510 implies traders are pricing in a breakout after the stock tests its 30-day moving average ($501.04). It’s like watching a boxer circle their opponent: no punches thrown yet, but the setup is there.

Trading the Bullish Bias: Specific Entry Points and Strike Selection

For options traders, the most attractive plays are:

• Buy BRKB20260116C510 (Friday expiry): With 22,133 contracts in open interest, this strike is a magnet for liquidity. If BRK.B closes above $510, the premium could spike.
• Buy BRKB20260123C505 (next Friday expiry): A slightly cheaper alternative if you want more time. The $505 strike has 3,578 OI and sits just below the 200-day MA ($497.22), making it a strategic level.

For stock traders, consider:

• Entry near $493.99 (lower Bollinger Band) if the stock holds above $495.1 (intraday low). Target: $506.08 (upper Bollinger Band) as a first profit zone.
• Stop-loss below $493.99 to protect against a breakdown.

Volatility on the Horizon: What to Watch This Week

The key is timing. BRK.B is stuck in a long-term range between $493.99 and $506.08. If it breaks above $506.08—especially with volume—this could trigger a cascade of call options at $510. Conversely, a close below $490 would flip the script, making puts at that level more attractive. Either way, the options market has already priced in directional movement. Your job? Ride the wave once the stock commits.

This isn’t a high-risk gamble—it’s a setup where options data and technical levels line up. Stay nimble, and don’t let fear of a pullback keep you sidelined. The market’s telling a story; it’s up to you to read the next chapter.