BRK.B Options Signal Bullish Bias: Key Call OI at $520 and $512.5 Suggest Aggressive Long Setup

• Current Price Action: BRK.B trades at $502.28, down 0.26% from its 52-week high of $506.50.
• Options Imbalance: Call open interest (OI) dominates at $520 and $512.5 strikes, with 2,607 and 1,900 contracts respectively.
• News Catalysts: $2.5B renewable energy investment, $1.2B buyback, and a $3B government rail contract boost long-term optimism.

Here’s the core insight: BRK.B’s options market is quietly bullish. Call OI at $520 and $512.5 suggests institutional players are pricing in a potential breakout above key resistance. But watch the $490.65 Bollinger Band support—this is where the first test of conviction will happen. The stock shows upside potential if it holds above $502.68 (200D support), but downside risks linger if the SEC inquiry escalates.Bullish Pressure in the Options Chain

The OTM call options with the highest open interest—particularly the $520 and $512.5 strikes expiring on Dec 12 (BRKB20251212C520 and BRKB20251212C5125)—are telling a story. These strikes cluster just above the 30D support/resistance range ($508.47–$509.23), hinting that big players are hedging for a rally into year-end. The put/call ratio of 0.605 (calls dominate) reinforces this, but don’t ignore the $495 and $500 put OI—it’s a safety net for a 3% drop.

Block trades in the $520–$525 put options (like BRKB20250919P525) from late November suggest some hedging activity, but those expirations are long gone. What matters now is the next Friday’s $520 call OI (1,989 contracts). If BRK.B closes above $515 by Dec 12, those calls could ignite a short-covering rally.

News Flow: Catalysts vs. Risks

The recent $2.5B NextGen Solar investment and $3B rail contract are textbook Buffett plays—long-term value with steady cash flow. Analyst upgrades and the $1.2B buyback program also signal management’s confidence. But the SEC inquiry into insurance subsidiaries is a wildcard. While Berkshire denies wrongdoing, a regulatory hit could pressure the $490.65 Bollinger Band support.

Investor sentiment is split: retail traders love the dividend and buyback, but institutional money is wary of the insurance sector’s volatility. The key is whether the $500–$515 range holds as a trading floor. If it does, the $520 call strikes become a magnet.

Actionable Trade IdeasFor Options Traders:

• Buy-to-Open BRKB20251212C5125 ($512.5 call, expiring Dec 12). With 1,900 contracts in OI, this strike is a sweet spot for a breakout play. Target a close above $515 to trigger momentum.
• Sell-to-Open BRKB20251212P495 ($495 put, same expiration) as a hedge. If BRK.B dips below $500, this put caps downside risk.

For Stock Traders:

• Entry near $502.68 (200D support). If the price holds here, target $515 as a short-term ceiling. Use the $490.65 Bollinger Band as a hard stop.
• Consider a buy-and-hold tilt if the $500–$515 range consolidates. The $1.5B dividend and $2.5B renewable energy play offer long-term tailwinds.

Volatility on the Horizon

BRK.B is at a crossroads. The options market is pricing in a bullish bias, but the SEC inquiry and insurance sector headwinds could create whipsaw moves. If the stock breaks above $515 cleanly, the $520 call wall becomes a self-fulfilling prophecy. But if it cracks below $490.65, the puts at $495 and $480 will dominate.

Bottom line: This is a high-conviction trade for those who believe in Berkshire’s long-term moat. The next 10 days will tell whether the bulls can outmuscle the bears—or if the market’s patience with Buffett’s legacy is wearing thin.