We decided not to treat buyouts any differently than anything else. If a company that is trading for $5 announces it will be bought out for $6, probably the price will go close to $6 overnight.
Now, you can do whatever you want.
1) You can sit on it until the close of the sale. 2) You can trade it immediately - figuring it is dead money for a month or two. 3) You can hold til the close in hopes of a bidding war. Then after the close, sit on the cash. 4) You can wait for the close and, if it is an all stock transaction, you now own another company. 5) You can wait for the close and then trade it.
But, there are no free trades in the deal. The only reason to have a free trade (meaning not using one of your transactions) is if there was something unfair because of a buyout. But, in general, a buyout means an immediate pop. The person can trade the next day if they want. Why should they ALSO get a bonus of that trade being "free"?