Bullish Setup in BRK.B Options: $530 Call OI Surge Signals Potential Breakout – Here’s How to Play It

• Berkshire Hathaway B (BRK.B) trades at $507.23, up 0.11% with volume at 1.08M.
• Options data shows heavy call open interest at $530 (next Friday) and $520 (this Friday), while puts cluster at $505 and $495.
• Q4 earnings smashed estimates, a $1.5B buyback, and a $3.2B acquisition signal strong fundamentals.

Here’s the core insight: options market sentiment is decisively bullish, with call open interest outpacing puts by a 1.6:1 ratio. Technicals and news flow align for a potential upside breakout—but regulatory risks linger. Let’s break it down.

What the Options Chain Reveals About Market Sentiment

The options market is painting a clear picture: investors are betting on a move above $530. For Friday’s expirations, the top call strike at $530 has 2,028 open contracts, while the $520 strike (next Friday) sees 555 OI. Puts, meanwhile, are concentrated at $505 (2,232 OI) and $495 (380 OI). This imbalance suggests positioners expect a rally, but hedgers are quietly buying downside protection near current levels.

The block trades add intrigue. A $1.5M put trade at the $525 strike (expiring Sept 19) and similar activity at $520 hint at large players hedging long-term positions. While these expirations are months away, they signal caution about near-term volatility—a heads-up for traders to watch regulatory developments around the Precision Drilling acquisition.

News Flow: Catalysts and Clouds

Berkshire’s Q4 revenue of $72.5B and a $1.5B buyback are textbook bullish drivers. The Precision Drilling acquisition adds industrial diversification, and the BNSF spin-off could unlock value in 2026. But the FTC probe into energy investments introduces a wildcard. Investor optimism is strong, but the regulatory overhang means short-term volatility is likely—especially if the acquisition faces delays.

Actionable Trade Ideas for Today

1. Options Play: Buy the BRKB20251212C530 call (strike $530, expiring Dec 12). With the stock trading near $507, this OTM call offers leverage if BRK.B breaks above its 30D support/resistance zone ($508–$509). A close above $510 would validate the move, and the $530 strike is now the most liquid call for next Friday.

1. Bull Call Spread: Buy the BRKB20251212C505 and sell the BRKB20251212C530 for a defined-risk play. This caps profit at $25/share but reduces cost if the stock gaps up.

1. Stock Entry: Consider buying BRK.B near $505 if it holds above the lower Bollinger Band ($488). A breakout above $509.60 (intraday high) would target $520–$530, aligning with heavy call OI. Set a stop below $495 (key put cluster) to manage risk.

Volatility on the Horizon

The next 48 hours will test BRK.B’s resolve. A close above $510 would validate the bullish case, while a drop below $500 could reignite bearish sentiment. Options traders should monitor the $530 strike’s open interest for signs of accumulation, and stock buyers should watch the FTC’s response to Berkshire’s energy filings.

In short: the options market is pricing in a rally, but patience is key. Play the breakout with defined risk, and keep an eye on the regulatory front—because even Warren Buffett can’t control Washington.