BRK.B at a Crossroads: Call OI Surge at $510 and Whale Puts Signal Volatility Playbook

• BRK.B trades at $503.16, down 0.22% with volume surging to 1.64M shares.
• Options OI shows 352K calls vs 207K puts, with heavy call interest at $510 and $520 strikes.
• Block trades of 440+ puts at $525 hint at institutional hedging or shorting ahead of Abel’s leadership shift.

Here’s the takeaway: BRK.B sits in a tight trading range, but options data and block trades suggest a brewing storm. The stock’s short-term bullish bias clashes with long-term uncertainty around Berkshire’s transition. Let’s break down what this means for your strategy.

Bullish Calls at $510 vs Bearish Puts at $495: A Battle for BRK.B’s Direction

The options market is split. This Friday’s BRKB20251219C510 call has 8,267 open contracts—the most of any strike—while the BRKB20251219P495 put has 6,581. That’s not just noise: it’s a bet that BRK.B could swing 2.5% either way in three days.

Why does this matter? The MACD histogram (-0.42) and RSI at 43.68 suggest the stock is oversold but trapped in a range. If bulls push above $510, the 30D MA at $502.21 could act as a springboard. But those puts at $495? They’re a warning sign. If the stock dips below the lower Bollinger Band ($490.78), those puts could trigger a cascade of stop-loss orders.

And don’t ignore the block trades: 440 puts at $525 (expiring Sept 19) moved $1.5M in volume. That’s not retail noise—it’s whales positioning for a prolonged dip. The question is whether this is a short-term hedge or a structural bearish shift.

Greg Abel’s Takeover and Buffett’s Legacy: Does This Help or Hinder BRK.B?

Warren Buffett’s exit is no secret, but the market’s reaction is nuanced. On one hand, Greg Abel’s operational expertise (he’s run Berkshire’s energy division since 2018) should reassure investors. On the other, Buffett’s disciplined investing philosophy is hard to replicate.

The news that 58% of Berkshire’s $318B portfolio is tied to Apple, Amex, and Coca-Cola adds another layer. If the S&P stumbles, BRK.B could face dual pressure: weaker portfolio performance and leadership uncertainty. That explains why options traders are buying those $510 calls and $495 puts—it’s a classic volatility play.

3 Specific Trades to Play BRK.B’s Volatility

1. Short-Term Call Play: Buy the BRKB20251219C510 if BRK.B breaks above $505.43 (today’s high). Target $515 for a 3.5% gain if the stock gaps up Friday.
2. Downside Protection: Buy the BRKB20251219P495 if the price tests the 30D support zone ($496.78–$497.28). This gives you a 2.8% buffer if the stock cracks below $500.
3. Stock Entry Strategy: Consider buying BRK.B near $501 (intraday low) if it holds above the lower Bollinger Band. Set a stop-loss at $497.28 and target $510 as a first exit.

Volatility on the Horizon: How to Position for BRK.B’s Next Move

The next 72 hours will test BRK.B’s resolve. If the stock holds above $501, the call-heavy OI at $510 could propel it toward $520. But if it breaks below $495, those block-traded puts might accelerate the slide.

Your edge? Use the next Friday’s options (BRKB20251226) for longer-term positioning. The BRKB20251226C517.5 has 1,451 contracts—enough liquidity to scale without slippage. And if you’re bearish? The BRKB20251226P460 offers a deep out-of-the-money hedge.

Bottom line: BRK.B isn’t just a stock—it’s a barometer for market confidence in Berkshire’s future. Right now, the options market is pricing in both hope and fear. Your job? Pick your side and play it smart.