Bullish OI at $510 and Bearish Block Trades Signal BRK.B's Volatile Path: How to Position for the 2025 Leadership Shift

• Options activity favors bulls: Call open interest spikes at $510 and $520, while puts dominate at $495 and $475.
• Technicals hint at a tight range: Price clings to 503.29, squeezed between 30D and 200D moving averages.
• Block trades whisper caution: Massive put trades at $525 suggest institutional hedging ahead of Buffett’s exit.

Here’s the thing: BRK.B isn’t just trading—it’s telling a story. The options market is betting on a breakout above $510, but bearish block trades hint at a potential selloff. Let’s unpack why this stock is a high-stakes chess game for 2025.

Bullish Calls vs. Bearish Bets: What the Options Map Reveals

The call open interest at $510 (8,147 contracts) and $520 (6,909) screams "expect a rally." But don’t ignore the puts: $495 (6,607 OI) and $475 (3,691) show traders are bracing for a drop. The put/call ratio of 0.59 (calls dominate) suggests optimism, but the block trades tell a different tale.

Look at those September 2025 put trades—440 contracts at $525, totaling $1.5M in turnover. This isn’t retail noise; it’s big players hedging against a post-Buffett transition. Think of it like a storm cloud: the sun’s shining (calls), but thunder rumbles in the distance (puts).

News That Could Tip the Scales: Buffett’s Exit and Market Sentiment

Warren Buffett stepping down as CEO by year-end is the elephant in the room. His legacy as a "long-term value" investor contrasts with today’s AI-driven market euphoria. Analysts are split: earnings estimates dip -27.3% YoY, but revenue growth stabilizes at 3.5%.

Meanwhile, Buffett’s recent cash hoarding ($382B) and warnings about overvalued markets add fuel to the bear case. The Buffett Indicator (market cap/GDP at 223%) screams caution. Investors love his track record, but his current strategy—hoard cash, avoid overpriced tech—might clash with short-term market trends.

Actionable Trades: Calls for Breakouts, Puts for ProtectionFor Options Traders:

• Bullish Play: Buy BRKB20251219C510 (Dec 19 expiry). If BRK.B breaks above 504.39 (resistance), this call could capitalize on the $510 OI wall.
• Bearish Hedge: Buy BRKB20251219P495 (Dec 19 expiry). A drop below 502.68 (200D support) could trigger a test of the $490 Bollinger Band.

For Stock Traders:

• Entry Near $502.68: If price holds above the 200D MA (498.09), consider buying dips toward 502.68. Target 504.39 (resistance) or 515 (if breakout confirms).
• Stop-Loss at $490.79: The lower Bollinger Band acts as a critical floor. A break here would validate the bearish block trade signals.

Volatility on the Horizon: Preparing for the Buffett Transition

BRK.B isn’t just a stock—it’s a symbol. The options data and news flow point to a stock at a crossroads. Bulls see a smooth leadership transition and Buffett’s enduring influence. Bears fear a shift in strategy or a market correction.

Your edge? Position yourself at the $510 call or $495 put, depending on which narrative you bet on. Either way, this isn’t a "wait and see" moment. The market’s already pricing in uncertainty—and that’s where opportunity lives.