BRK.B at a Crossroads: Call OI at $490 and Block Put Trades Signal Volatility—Here’s How to Position

• BRK.B trades at $476.44, down 0.43% amid a short-term bearish trend and a bullish engulfing candle.
• Options data shows heavy call open interest at $490 and $495, while block puts at $520 strike hint at hedging by large players.
• Bollinger Bands and RSI suggest oversold conditions, but long-term moving averages (30D, 200D) remain above current price.

Here’s the core insight: BRK.B is caught between short-term bearish momentum and a buildup of call options at key resistance levels. The options market is pricing in a potential rebound, but block put trades signal caution. Let’s break down what this means for your strategy.

The Options Imbalance: Calls at $490 vs. Puts at $470

The options chain tells a story of divided sentiment. For Friday expiration, call open interest peaks at $490 (OI: 6,677) and $495 (OI: 2,311), while puts dominate at $470 (OI: 1,101) and $475 (OI: 1,712). This suggests two camps: one betting on a rebound to $490+ and another hedging against a drop to $470. The put/call ratio of 0.596 (calls outweighing puts) leans bullish, but the block trades tell a different tale.

Block puts at $520 strike (BRKB20250919P525) with 440 contracts traded are massive, given BRK.B’s typical volume. These are deep out-of-the-money puts, implying large players are hedging against a rare but severe downside. Think of it like buying flood insurance for a house in a dry region—you’re not expecting a storm, but you’re covering the worst-case scenario.The Risk? If BRK.B fails to break above $490, the heavy call OI could create a self-fulfilling sell-off as traders cut losing positions. Conversely, a drop below $475 (lower Bollinger Band at $477.76) might trigger stop-losses and accelerate the decline.News Flow: Buffett’s Exit and Subsidiary Earnings

Warren Buffett’s retirement and the end of his annual shareholder letters have investors questioning Berkshire’s long-term strategy. The “Buffett Premium” in valuation is fading, which could pressure BRK.B’s multiples. However, subsidiaries like RenaissanceRe and Assurant just beat Q3 earnings, hinting at operational resilience. These mixed signals create a tug-of-war: investor uncertainty vs. business fundamentals.

The block put trades align with this tension. Buffett’s legacy has long insulated Berkshire from volatility, but the market is now testing how the company performs without his direct influence. If earnings from subsidiaries like Unum Group or BHRG continue to outperform, the stock could rally on earnings-driven optimism. But if leadership transitions stall strategic clarity, the puts will gain traction.

Actionable Trade Ideas: Calls at $490, Puts at $470

For options traders, the most compelling setups are:

• Long Call at $490 (Friday expiry): If BRK.B breaks above $490, the heavy OI could push it toward $500. Entry: $490 strike, target: $500 (2.7% move).
• Bear Put Spread at $470 (Friday expiry): A drop below $475 (lower Bollinger Band) could trigger a cascade. Buy $470 puts and sell $460 puts for a defined risk/range trade.

For stock traders, consider:

• Entry near $477.76 (lower Bollinger Band): If the price holds here, target $490 (resistance) or $495 (call-heavy zone).
• Stop-loss below $475: Protect against a breakdown in short-term support.

Next Friday’s Expiry? The $500 call (OI: 2,760) and $470 put (OI: 1,018) are key. If BRK.B rallies past $495 by then, the $500 call could see explosive volume.Volatility on the Horizon

BRK.B is at a pivotal moment. The options market is pricing in a potential rebound, but block puts and Buffett’s legacy create a ceiling of doubt. Short-term, watch the $490 level like a hawk—it’s both a technical resistance and a psychological battleground. Long-term, the stock’s direction will hinge on whether Berkshire’s subsidiaries can sustain earnings momentum without Buffett’s brand magic.

Your move? Position for a breakout or hedge with puts, but don’t ignore the risk of a prolonged consolidation. The market isn’t screaming “buy” or “sell”—it’s whispering “wait and see.” And in crypto, whispers can turn into storms faster than you think.