BRK.B Options Signal Bullish Battle at $510–$520 Amid Tech Bet and Leadership Shifts: Here’s How to Play It

• Bullish call open interest peaks at $510–$520, while puts cluster at $490–$495
• Block trades on $520 puts hint at institutional hedging ahead of 2025
• Berkshire’s $4B Alphabet bet and CEO transition fuel mixed market sentiment

Here’s the thing: BRK.B is caught in a tug-of-war between bullish options positioning and cautious institutional moves. The stock’s current price of $507.11 sits just below a 30-day moving average of $492.57, while options data screams of a potential breakout. Let’s break down what’s really happening—and how to position for it.

The Options Playbook: Calls vs. Puts in the $500s

The options chain tells a story of optimism and anxiety. For Friday’s expirations, call open interest spikes at $510 (2,965 contracts) and $520 (2,515), suggesting traders are betting on a rebound above current levels. Meanwhile, puts dominate at $490 (2,871) and $497.5 (2,304), indicating a fear of a pullback to the 200-day moving average (~$496). The put/call ratio of 0.618 leans heavily toward bullish sentiment, but don’t ignore the block trades: $520 puts (BRKB20250919P520) saw 960 contracts traded in two massive blocks, totaling $2.76M. That’s not retail noise—it’s big players hedging a potential dip in late 2025.

What This Means for You

The call-heavy OI at $510–$520 implies a $5–$10 upside target if BRK.B breaks above its 52-week high of $511.25. But the puts at $490–$497.5 act as a psychological floor. If the stock dips below $506.8 (today’s intraday low), watch for a test of the 30-day support at $488.40. The block trades on $520 puts add a twist: they could trigger a short-term bounce if volatility spikes, but they also signal a bearish undercurrent for longer-term players.

News That Could Tip the Scales

Berkshire’s recent $4B Alphabet stake and $9.7B Occidental acquisition scream “tech and energy bets,” aligning with Warren Buffett’s long-term vision. Yet the Apple and Bank of America divestments hint at a rebalancing act. Combine this with the chairman/CEO role separation, and you’ve got a stock at a crossroads. The market’s reaction? Mixed. While the tech bets justify optimism, the leadership transition adds uncertainty. Retail investors might be bullish on the Alphabet play, but institutional players are hedging—hence those $520 put blocks.

Actionable Trade Ideas: Calls, Puts, and Price Levels

1. Bull Call Spread (Friday Expiry): Buy the $510 call (OI: 2,965) and sell the $520 call (OI: 2,515). If BRK.B closes above $510 by Friday, your max profit is $10/share. Why? The high OI at $510 suggests a likely support level, while the $520 strike is a popular resistance target.

1. Bear Put Spread (Next Friday Expiry): Buy the $495 put (OI: 4,864) and sell the $490 put (OI: 2,55). If the stock drops below $495, you’ll pocket the spread. This plays the 200-day moving average (~$496) as a potential magnet for bears.

1. Stock Entry Strategy: If you’re bullish, consider entering near $506.80 (intraday low) with a stop-loss at $500. A breakout above $511.25 (intraday high) could target $515–$520, where heavy call OI might create a self-fulfilling prophecy. For bears, wait for a close below $491.18 (Bollinger Middle Band) before shorting, with a target at $470.59 (lower band).

Volatility on the Horizon: What to Watch

The next few weeks will test BRK.B’s resolve. A breakout above $511.25 could trigger a rally toward $520, fueled by call OI and Buffett’s tech bets. But a breakdown below $491.18 might send it into the lower Bollinger Band, where the puts at $490–$495 could catch it. The block trades on 2025 puts add a wildcard—don’t be surprised if volatility spikes in September as hedging intensifies.

Bottom line: BRK.B is in a tightrope walk between bullish options positioning and cautious fundamentals. The $510–$520 range is a battleground. Play it smart—use the call spreads for upside, the put spreads for downside, and keep an eye on Buffett’s next move. After all, if he’s betting on Alphabet, the long-term story might still be bullish—even if the short-term ride gets bumpy.