Bullish OI at $510 and $520 Calls Signal BRK.B Breakout Potential: Here’s How to Play It

• BRK.B trades at $500.20, down 0.63% from its 52-week high of $515.21
• Call open interest surges at $510 ($8,239) and $520 ($6,895) strikes for Friday expiration
• Put/call ratio of 0.586 shows strong bullish bias, but $495 puts ($6,492 OI) hint at downside caution

Here’s the takeaway: BRK.B’s options market is pricing in a high-probability bullish scenario, with heavy call buying at key strikes above current levels. Technicals and sentiment align for a potential breakout—but the $500 support level is critical. Let’s break down why this matters for your strategy.

Bullish Imbalance in Calls vs. Cautious Puts

The options chain tells a clear story: traders are betting on a rebound. For Friday expiration, the $510 call (BRKB20251219C510) and $520 call (BRKB20251219C520) dominate open interest, with combined OI of 15,134 contracts. This suggests positioning for a move above $504.46 (30D resistance) and into the upper Bollinger Band at $515.21.

But don’t ignore the puts. The $495 put (BRKB20251219P495) has 6,492 OI, acting as a liquidity magnet if the stock dips below $500. Block trades in September-dated puts (like BRKB20250919P525) show large players hedging long-term risk, but these expire in 3 months—so they’re not immediate pressure points.

News: Buffett’s Exit and Alphabet Bet Fuel Diverging Narratives

Warren Buffett’s departure creates uncertainty, but Berkshire’s $4.3B Alphabet bet is a bullish wildcard. The 27% surge in GOOGL post-purchase mirrors Buffett’s value-investment DNA, which could indirectly boost BRK.B’s appeal as a "blue-chip safe haven." However, Todd Combs’ exit to JPMorgan and Berkshire’s cash hoard ($341B) signal caution—investors might be hedging against a post-Buffett identity crisis.

Actionable Trades for Today

1. Options Play: Buy BRKB20251219C510 calls if price breaks above $504.46. Target $515.21 (upper band) with a stop below $500.
2. Stock Play: Enter long near $503.06 (middle Bollinger Band) with a tight stop at $499.65 (intraday low). Target $510–$515.
3. Bearish Hedge: Sell BRKB20251219P495 puts if price dips to $500, collecting premium while capping downside risk.

Volatility on the Horizon

BRK.B sits at a crossroads: technicals and options sentiment favor a bullish breakout, but leadership risks linger. The next 72 hours will test whether $500 holds—a close above $504.46 would validate the call-heavy positioning. For traders, this is a high-conviction setup with clear entry/exit points. Stay nimble: if the stock gaps below $499.65, pivot to the $495 puts for a short-term countermove.