BRK.B Options Signal Bullish Setup: $530 Call OI Surges as Buffett’s Tech Bet Adds Fuel

• BRK.B trades at $505.71, down 0.56% from its 52-week high but holding above its 200D MA of $497.73.
• Call open interest dominates, with 327K total calls vs. 199K puts (ratio: 0.61), and heavy positioning at the $530 strike.
• Buffett’s Q3 moves—selling Bank of America, buying Alphabet and Lamar—hint at a shift toward high-yield and tech plays.

Here’s the takeaway: options traders are pricing in a bullish bias, with heavy call buying at $530 and $535 strikes. But the stock’s long-term rangebound profile means volatility could swing either way if key levels break.

Bullish Pressure at $530, But Puts Signal Caution

Let’s start with the options data. For Friday’s expiration (Dec 5), the $530 call (BRKB20251205C530) leads with 1,205 open contracts, followed closely by the $535 call (1,200 OI). This isn’t just noise—it’s a vote of confidence. Traders are betting BRK.B could test $530 in the short term, especially with Buffett’s recent Alphabet purchase signaling a tech tilt. But don’t ignore the puts: the $505 put (BRKB20251212P505) has 2,212 OI, suggesting some hedging at the 30D MA level ($501.34).

The block trades in September-dated puts ($525, $520 strikes) are also telling. While their expiration is months away, the sheer volume (440–480 contracts) hints at institutional hedging or positioning. It’s a reminder that even in a bullish setup, BRK.B’s long-term rangebound trend means volatility isn’t guaranteed to trend higher.

Buffett’s Moves Align with Options Sentiment

Warren’s Q3 playbook—selling Bank of America and buying Alphabet—adds context. The Bank of America reduction (now 568M shares) and $2.4B Alphabet bet reflect a pivot toward high-growth and high-yield assets. Alphabet’s AI-driven ecosystem and Lamar’s sticky real-estate advertising model fit Buffett’s recent focus on cash-generating, durable businesses. This could buoy BRK.B’s intrinsic value, especially if the market rewards its tech diversification.

But here’s the catch: Buffett’s top three holdings (Apple, Amex, Bank of America) still make up 52% of the portfolio. While these are stable, they’re not growth plays. If the market pivots toward AI or rate-sensitive sectors, BRK.B’s performance could lag. The options data—particularly the heavy call buying—assumes Buffett’s new bets will offset this, but it’s not a sure thing.

Trade Ideas: Calls for Aggressive Bulls, Stock for Cautious Grinders

For options traders, the $530 call (BRKB20251212C530) is a high-conviction play. If BRK.B breaks above its 30D MA ($508.47) and holds the 200D MA ($497.73), this strike could see action. Entry: $530 call premium (~$12–$15). Target: $530–$540. Stop-loss: below $505 (lower Bollinger Band at $482.26 would be catastrophic).

For stock buyers, consider entries near $492.99 (200D MA support). If the price holds here, a rebound toward $515–$520 is plausible. A collar strategy could pair the $505 put (BRKB20251212P505) with the $530 call for defined risk/reward.

Volatility on the Horizon

BRK.B’s technicals and options data paint a mixed picture: short-term bullish momentum vs. long-term rangebound tendencies. The key will be whether Buffett’s new bets (Alphabet, Lamar) drive earnings optimism or if the market retests the Bank of America reduction as a weakness. For now, the $530 call strike and $492.99 support level are your best guides. Stay nimble—this stock doesn’t like to stay in one place for long.