Large BRK-B options trade

I watch for unusual options activity in the stocks that I follow and sometimes use that information to add/trim to my position as they seem to be good indicators of bullishness/bearishness in my experience. BRK-B generally doesnt have large options activity. Therefore, the few big options trades in it assume more significance.
Late this afternoon, right before market close, there were close to a million dollars worth of Jan’25 300c options that were traded. A million dollar BRK-B stock trade may not be a big deal. But a million dollar out of the money LEAPs options sweep trade stands out just because they dont happen very often in BRK-B.

Make of it what you will. Don’t bet your farm on it. But, I feel more comfortable knowing that there is big money flowing into it and see it as a bullish sign. I added to my BRK-B position.

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I’m not too educated with options. Would you please explain what this trade is? What’s the bet?

Appreciated.

m

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Someone paid around $48 to buy a BRK-B 300 call option expiring in January 2025. Simply put, the trade is profitable if the price of BRK-B is over $348 by that date. Of course one could close the trade for a profit much before that date if the price of BRK-B continues to go up.


This chart shows how the profitability of that $4800 option could change based on the stock price and time.

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What do you make of this?

BRK.B Jan 2025 290.000 put
$40.30
Volume 500

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When the 2025’s started trading a few weeks ago I traded about 1,000 option contracts both Puts and Calls. It was mostly rolling 2024 and some 2023 contracts out a year or so. With the price of BRK down it seemed like a good time to recognize lower gains and hopefully move larger gains out a year or so at attractive incremental costs.

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