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What Berkshire’s Q1 tells options traders

Berkshire Hathaway’s Q1 2026 10-Q — Greg Abel’s first full quarter as CEO — shows $24.1 billion in equity sales against $15.9 billion in purchases. Net selling: roughly $8.1 billion. Fourteenth consecutive quarter as a net seller. The cash pile grew to $397 billion. And somewhere in all of that, there’s a usable options angle. Let’s get into it.

First, some context on the selling. Todd Combs departed Berkshire in December 2025 to lead JPMorgan Chase’s new Strategic Investment Group, officially joining in January 2026. Multiple reports have attributed a portion of Q1’s equity liquidations to positions previously managed within Combs’s sleeve of the portfolio — though Berkshire has not confirmed that specifically. What is confirmed: the selling happened, the departure happened, and the timeline lines up. The operating side, meanwhile, was clean: operating earnings rose 18% year over year to $11.35 billion; insurance underwriting profit climbed roughly 28% in a quarter with no major catastrophe events; float grew to $176.9 billion.

Now here’s what I think most people skip — the options read on all of this.

BRK.B: structurally low vol, and that’s the point

BRK.B’s 30-day historical volatility sits around 16% — well below the broader market. The put/call implied volatility ratio was near parity at 0.97 as of mid-March, meaning the options market isn’t pricing in significant directional fear in either direction. For traders, that matters. Low IV on a stock holding $397 billion in cash and generating $11+ billion quarterly in operating earnings means options premium is relatively compressed. Defined-risk structures here are cheap in absolute dollar terms — but cheap for a reason. BRK.B doesn’t move violently. That’s the trade-off.

If you believe Abel deploys a meaningful portion of that cash pile in the next two to three quarters — acquisitions, buybacks, or both — a long call spread on BRK.B with a 60–90 day window is a defined-risk way to position for a re-rating. The risk is capped at the debit paid. The challenge is that low IV means low premium collected on the short leg, so spread width matters more than usual here.

The five core holdings — and what options are pricing in

Berkshire’s Q1 2026 10-Q confirms the five largest equity positions as of March 31: American Express, Apple, Bank of America, Coca-Cola, and Chevron. Each tells a different vol story.

• Apple (AAPL) – IV was running around 28 with an IV Rank near 62% as of late April — elevated relative to its trailing 52-week range. That’s not cheap premium. For traders expecting AAPL to range-trade through summer, a short put spread or iron condor captures elevated premium with defined risk on both sides. For traders expecting continued downside given Berkshire’s multi-quarter trim, a put debit spread below current levels is the lower-cost directional expression.
• American Express (AXP) – Berkshire holds 151.6 million shares representing roughly 21.6% of AXP’s outstanding stock, valued near $40.7 billion as of March 31. AXP has historically carried lower implied vol relative to peers. A covered call overlay (for those long the stock) or a cash-secured put at a discount to current price — both standard defined-risk approaches for a low-growth, dividend-paying compounder.
• Bank of America (BAC) – Berkshire trimmed in Q4 2025 per 13F data. Financial sector IV has been choppy with rate uncertainty. BAC options tend to see elevated put activity around macro events. For traders watching the BAC position, a put spread below the Q1 2026 lows is a way to define downside risk without unlimited exposure.
• Coca-Cola (KO) – 400 million shares, ~$28.5 billion, ~10.3% of the portfolio. KO is a 62-consecutive-year dividend grower. Implied vol here is structurally low. This is a wheel-strategy or cash-secured put candidate — low premium but low risk, and the dividend yield provides a natural buffer.
• Chevron (CVX) – 118.6 million shares, ~$16.2 billion, ~5.9% of the portfolio. Berkshire added to CVX in Q4 2025 — notable given the broader selling. Energy IV tends to spike with oil price moves. For traders aligned with Berkshire’s energy conviction, a bull put spread on CVX captures premium while defining the floor. CVX’s ~4.74% dividend yield anchors the bull case.

The bigger picture for options traders

The part people skip is this: Berkshire’s $397 billion cash position is itself an options-like asset. Abel holds the right — not the obligation — to deploy at a time and price of his choosing. That’s optionality in the purest sense, and it’s worth remembering when sizing around any of these five names. The portfolio isn’t leveraged. The floor is well-defined. The upside trigger is unknown but real.

What I’m watching: whether the Q1 2026 13F (filed May 15, 2026) reveals which positions were fully exited and whether any new names show up reflecting Abel’s own conviction rather than inherited exposure. That filing changes the options calculus meaningfully on whatever moves.

Five core names. Very different vol environments. One massive cash position that could move any of them overnight.