I am new to options and I have a question to the more experienced traders. I would like to put on a Butterfly on CCU because the IV is very high now. It is not suere that the buy out deal (announced since the last year) will happen at the end of the next week. In the news it sounds like they are not going to make it for march, maybe in april. My idea is a butterfly , bearish: April 08 PUT 15 April 08 PUT 27,50 (sell) April 08 PUT 40 A contract for 30 $ My questions: In case they are going to make the deal, is IV decreasing quikly afterward? And in a situation like now (bearish trend) are prices going up stronlÃ¬gly after the deal? Myself I think prices want get much higher then 40 In case they are not making the deal until the end of april should IV drop in the main time and prices too? I hope somebody understand what I mean.