NEW YORK (TheStreet) -- Actions by uber-investors, like Nelson Peltz against the Bank of New York (BK) and Carl Icahn against Apple (AAPL), are instructive in showing how to profit using options. Popular mergers and acquisitions, as well as other transactions, can provide similar opportunities. Investors following Icahn with Apple shares and Peltz's earlier pressuring of Mondelez (MDLZ) did well, and there is no reason it cannot happen with the Bank of New York and others in the future.
Jim Cramer is bullish on Bank of New York and recommends "piggybacking" on Peltz's position. Doing that using options can be even more profitable than owning the stock.
Options are agreements where a buyer has the right, but the not the obligation, to buy ("call") or sell ("put") the underlying asset at a specific price within a set period of time.
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