Bullish Call OI at $505 and Whale Put Activity Signal BRK.B's Volatility Play: How to Position for a $500+ Breakout

• Berkshire Hathaway B (BRK.B) trades at $499.7, up 0.96% with RSI at 43 (oversold) and a put/call open interest ratio of 0.59 (bearish skew).
• Options data reveals heavy call open interest at $505 and $502.5, while block trades in $520–$525 puts suggest institutional hedging or short-term bearish bets.
• Buffett’s recent investments in UnitedHealth and Japanese conglomerates, plus Q2 record earnings, underpin long-term bullish sentiment despite Kraft Heinz’s strategic challenges.

Berkshire Hathaway B is poised at a critical juncture where technical indicators, options positioning, and corporate actions align to signal a high-probability breakout. The stock’s 0.96% intraday gain has pushed it above the 30-day moving average ($492.60) and into the upper Bollinger Band ($505.27), while options data reveals a stark imbalance: 285,062 call open interests (OI) versus 168,713 puts. This 0.59 put/call ratio—combined with whale-sized block trades in deep out-of-the-money (OTM) puts—suggests a volatile near-term path. Traders must balance the bullish technical setup with the bearish hedging activity to capitalize on the $500+ price target.

Call OI Dominance at $505 and Whale Put Accumulation at $520–$525 Signal Mixed Sentiment

The options chain for BRK.B shows a clear concentration of call open interest at the $505 strike (1,321 contracts) and $502.5 (1,095 contracts), with additional liquidity at $507.5 and $550. These strikes cluster near the upper Bollinger Band ($505.27) and the 200-day resistance range ($493.17–$495.12), indicating retail and institutional positioning for a breakout. Conversely, the put side is dominated by $475 (1,338 OI) and $480 (714 OI) strikes, but the most alarming activity is in block trades: 440 contracts of $525 puts and 480 contracts of $520 puts traded on 2025-09-19 expirations. These deep OTM puts—trading at prices 4.5%–5% below the current price—suggest large players are hedging against a potential pullback or shorting volatility. The juxtaposition of bullish call OI and bearish whale put activity creates a high-risk, high-reward scenario: a breakout above $505 could trigger a parabolic move, while a test of the $486.47 lower Bollinger Band could see sharp selling pressure.

Buffett’s Strategic Moves and Q2 Earnings Validate Long-Term Bull Case

Warren Buffett’s recent investments in UnitedHealth Group and Japanese conglomerates like Mitsubishi Corp. reinforce BRK.B’s long-term bullish narrative. The $35.91 billion Q2 net income and $92.5 billion revenue—up 21.39% YoY—highlight the company’s resilience in a volatile macro environment. However, Kraft Heinz’s $9 billion charge and the sale of HP Inc. stake below 10% introduce near-term uncertainty. These developments create a dual narrative: Buffett’s strategic bets in high-growth sectors (healthcare, construction) and Japan’s economic recovery support a $500+ price target, while Kraft Heinz’s strategic reevaluation could weigh on sentiment. Retail investors must weigh these factors against the options data: the call OI at $505 aligns with Buffett’s bullish thesis, but the whale put trades suggest a potential short-term correction before the long-term trend resumes.

Actionable Trade Ideas: Call Spreads for $505 Breakout, Put Hedges for $495 Support

For options traders, the most compelling setup is a call debit spread using the BRKB20250919C505 ($505 strike) and BRKB20250919C510 ($510 strike) contracts. With the stock trading at $499.7, buying the $505 call and selling the $510 call creates a defined-risk trade that profits if BRK.B closes above $505 at expiration. The maximum risk is $5 (strike width), while the reward is $5 per contract if the stock surges past $510. For next Friday’s expirations, the BRKB20250919C510 call (833 OI) offers a similar setup with tighter time decay.

On the stock side, entry near $495 (middle Bollinger Band) is ideal if the 30-day support ($488.49–$489.08) holds. A breakout above $501.35 (intraday high) could target $505.27 (upper Bollinger Band) and then $510. A stop-loss below $496.65 (intraday low) would protect against a breakdown. For conservative traders, a put hedge using the BRKB20250919P495 ($495 strike, 3,161 OI) provides downside protection if the stock dips toward the $486.47 lower band.

Volatility on the Horizon: Balancing Bullish Momentum and Bearish Hedging

The interplay between call OI dominance and whale put activity suggests a volatile near-term path for BRK.B. While the technicals and Buffett’s strategic bets point to a $500+ breakout, the block trades indicate institutional caution. Traders should adopt a dual approach: long-dated calls for the bullish case and short-term puts to hedge against a pullback. The key is to monitor the 200-day moving average ($489.61) and the $495.12 resistance level—if BRK.B closes above $505 this week, the bullish momentum could accelerate. Conversely, a close below $488.49 would validate the bearish block trade thesis. With Buffett’s Japan and healthcare investments providing a long-term tailwind, the stock’s near-term volatility offers a unique opportunity to position for both directional and volatility-driven trades.