Kinross announced it is buying RedBack Mining for just over $7B today. The combination Kinross Red Back has the potential to be a major force. Kinross' shares have dropped over 5% on the news.
Below are straddles for for GDX (miners) ETF for December, showing that a move of 15% makes the position profitable:
These are for KGC for August and November, computed with the free StraddlesCalc Tool.
Please do your own due diligence. This is not advice. Options are very dangerous and may cause 100% loss.