BRK.B Options Signal Bullish Bias Amid Leadership Transition: Key Strikes and Block Trades to Watch

• Current Price Action: BRK.B trades at $503.48, up 0.44% with volume surging to 2.05M shares.
• Options Imbalance: Call open interest (349,646) outpaces puts (217,439), with heavy call OI at $505 and $510 strikes.
• Block Trade Alert: $1.5M+ put block trades at $520–$525 strikes (expiring 2025-09-19) hint at long-term bearish positioning.
• Technical Setup: RSI near overbought (69.4) and MACD above signal line suggest short-term momentum, but Bollinger Bands show price near upper bound.

The Big Picture: BRK.B sits at a crossroads—short-term technicals and options flow favor a bullish breakout, but massive block trades signal long-term caution. Let’s unpack what this means for your strategy.The Options Playbook: Calls, Puts, and Whale Moves

The options market is sending mixed signals. This Friday’s expiring calls show heavy open interest at $505 (6,946 contracts) and $510 (3,370), while puts dominate at $490 (2,867) and $497.5 (2,347). This suggests traders are hedging against a pullback but also betting on a push above $510.

But here’s the twist: massive block trades in September 2025 puts (like BRKB20250919P525 with $1.5M turnover) indicate institutional players are locking in downside protection for a potential 10% drop from current levels. These aren’t retail traders—they’re positioning for a long-term shift.

The Buffett Factor: Tech Bets and Transition Risks

Warren Buffett’s recent moves are reshaping the narrative. Buying into a “Magnificent Seven” tech stock and selling Apple shares shows a strategic pivot toward growth. But his post-earnings sales and $1.4B charitable giveaway add short-term uncertainty.

The Q3 earnings surge ($30.9B profit) and $382B cash hoard are bullish, yet Buffett’s stock sales and Greg Abel’s emerging role create a tug-of-war between optimism and caution. Investors are pricing in both the tech pivot and the leadership transition—hence the heavy put activity.

Actionable Trades: Calls, Puts, and Precision Entries

For options traders, the most compelling plays are:

• Bullish: Buy BRKB241122C505 (this Friday’s $505 call) if BRK.B breaks above $506.11 (intraday high). Target: $515.
• Bearish: Buy BRKB241129P490 (next Friday’s $490 put) if price dips below $492.77 (middle Bollinger Band). Stop loss at $488.40 (30D support).

For stock traders, consider:

• Entry: $501.11 (intraday low) if support holds.
• Target: $515.33 (upper Bollinger Band) if RSI stays above 60.
• Stop: $489.15 (30D resistance) to protect against a breakdown.

Volatility on the Horizon: Navigating BRK.B’s Crossroads

The coming weeks will test BRK.B’s resolve. Short-term bulls have momentum on their side, but the block trades at $520–$525 strikes suggest a structural risk if Buffett’s succession plan stumbles or tech bets underperform.

Your edge? A balanced approach: use the $505 call to capitalize on the near-term breakout while hedging with the $490 put. And keep an eye on BHRG’s reinsurance growth—it could be the wildcard that tips the scales.

Final Take: BRK.B isn’t just a stock—it’s a barometer for Buffett’s legacy and Berkshire’s future. Right now, the options market is pricing in both a tech-driven rebound and a cautious transition. Your job? Ride the bullish wave but stay alert for the long-term puts that whisper, “This could get bumpy.”