is not a frequent name on our systems, but last week it saw some unusual option activity.
Buyers snapped up the September 90 calls in the Class B shares of Warren Buffett’s company for $0.88 to $0.93 on Thursday, according to OptionMonster’s tracking systems. More than 5,500 contracts traded, about twice the previous positioning in the strike.
Callslock in the price investors must pay for the stock, so they can provide huge leverage if it goes up. But they can also expire worthless if the shares fall or don’t move enough.
Berkshire Hathaway Class B shares fell 0.17 percent to $80.91 on Thursday and is at the upper end of its range in the last year. The company is an investment managing firm that primarily engages in the insurance and reinsurance of property and casualty risks.
Calls outnumbered putsby about 9,200 to 1,200, a reflection of the bullish sentiment.
—Najarian has no positions in BRK.B.
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Pete Najarianis a professional investor, CNBC contributor, regular co-host of CNBC’s “ Fast Money ” and co-founder of OptionMonster.com .