BRK.B Options Signal Bullish Bias: Key Strike Levels and Block Trades Point to Strategic Entry Zones

• BRK.B trades at $499.51 with a 0.09% intraday gain, hovering near 30D support/resistance at $488.67–$489.21.
• Options data shows a 0.61 put/call open interest ratio, with heavy call OI at $500 and put OI at $480–$490.
• Massive block trades in deep puts (expiring 2025-09-19) suggest institutional hedging or bearish positioning.

Here’s the core insight: BRK.B is perched on a tightrope of bullish momentum and bearish caution. The stock’s short-term technicals lean higher, but options data and block trades hint at a potential tug-of-war. Let’s break down why this setup matters for traders.

Bullish Pressure vs. Bearish Safeguards: Decoding the Options Imbalance

The options market is a chessboard of expectations. Right now, BRK.B’s OTM call options show a clear bias toward the upside. The $500 strike (just $0.49 above current price) has 3,340 open interest for next Friday’s expiration—the highest among all calls. This suggests traders are betting on a modest rally, likely driven by the stock’s proximity to its 30D moving average ($491.78) and the recent $381.7B cash hoard news.

But don’t ignore the puts. The $480 and $490 strikes dominate the put side with 3,869 and 2,944 open interest respectively. These strikes align with the Bollinger Band middle ($488.53) and the 200D moving average ($495.16). Think of it like a safety net: if BRK.B dips below $495.16, the puts at $490 could trigger a wave of stop-loss orders or hedging activity.

The block trades add another layer. Four massive puts (expiring 2025-09-19) with strike prices between $520 and $525 have moved $5.8M in contracts. These are deep out-of-the-money, meaning the market is pricing in a significant downside risk—possibly tied to Buffett’s leadership transition or macroeconomic concerns. It’s like seeing a storm cloud on the horizon; the puts aren’t screaming “crash coming,” but they’re whispering “prepare for turbulence.”

News Flow: Buffett’s Exit and Cash Piles Fuel Mixed Sentiment

Warren Buffett’s decision to step down as CEO by 2025 has investors split. On one hand, the record $381.7B cash reserve and 34% operating earnings growth are textbook Buffett fundamentals—stable, diversified, and cash-rich. On the other hand, his AI deepfake warning and the absence of his annual letter introduce uncertainty. Greg Abel’s leadership transition is smooth on paper, but markets often test the mettle of new CEOs.

Here’s the kicker: the news doesn’t directly contradict the options data. The cash hoard and earnings beat justify the bullish call OI, while the leadership shift and AI risks explain the bearish put positioning. It’s a classic case of “buy the rumor, sell the news”—but with a twist. Buffett’s disciplined capital allocation strategy (highlighted in recent analyses) could anchor the stock, but the block trades suggest some players aren’t fully confident in that narrative.

Actionable Trade Ideas: Calls for the Bull, Puts for the Bear

For options traders, the most compelling setup is the $500 call (BRKB240322C500) expiring Friday. At just $0.49 above the current price, this strike offers a low-cost way to bet on a short-term rally. If BRK.B breaks above the Bollinger Band upper ($502.61), the $505 call (BRKB240322C505) becomes a stronger play for next Friday’s expiration. Both strikes align with the 30D/200D moving average convergence, which often acts as a gravitational pull for price.

For stock traders, the key entry zone is $488.53–$489.21 (the 30D support range). If BRK.B holds here, it could trigger a rebound toward $502.61. A stop-loss below $485.13 (the intraday low) would protect against a breakdown. The 200D moving average at $495.16 is a critical pivot point—watch for volume spikes if the stock tests it.

Bearish players might consider the $490 put (BRKB240322P490) expiring Friday. This strike sits at the intersection of the Bollinger Band middle and the 200D MA. If BRK.B dips below $488.53, the $480 put (BRKB240322P480) becomes a safer bet, though it’s more expensive due to higher open interest.

Volatility on the Horizon: Balancing Bullish Momentum and Bearish Caution

The next 30 days will test BRK.B’s resolve. The stock’s technicals favor a bullish breakout, but the options market and block trades suggest a potential pullback. This isn’t a binary “buy” or “sell” scenario—it’s a high-probability range trade with defined entry/exit points. The key is to stay nimble: if the stock breaks above $502.61, ride the momentum. If it falls below $488.53, tighten stops and reassess.

Warren Buffett once said, “Be fearful when others are greedy and greedy when others are fearful.” Right now, the market is a mix of both. The calls reflect greed (betting on a rally), while the puts and block trades show fear (hedging against a drop). For traders, that tension creates opportunities—just make sure to define your risks before the next move.