Now I get it, 1 missing parameter in all options pricing model, they not adjusting for commissions Vs volatility factor, so for long straddles, you have gamma Vs theta Vs volatility and also commissions Vs volatility factor.
If say you bought an options whose value is 0.95 dollar and it's theoretical true value is $1 you gotta adjust for it in terms of pips for commissions too, at least for retail side, that's part of what bleeds most traders silently.
Implication, for retail, long straddles are inherently better as it minimises adjustment cost for them mainly because, the adjustment for long straddles can come from spot mostly, which is alot cheaper than having to use options to adjust on top of the initial risk outlay.
However if you are trading in an exchange or in general lower bid ask spreads Vs spot or in a professional capacity then things are different when you can negotiate commission costs.
If say you bought an options whose value is 0.95 dollar and it's theoretical true value is $1 you gotta adjust for it in terms of pips for commissions too, at least for retail side, that's part of what bleeds most traders silently.
Implication, for retail, long straddles are inherently better as it minimises adjustment cost for them mainly because, the adjustment for long straddles can come from spot mostly, which is alot cheaper than having to use options to adjust on top of the initial risk outlay.
However if you are trading in an exchange or in general lower bid ask spreads Vs spot or in a professional capacity then things are different when you can negotiate commission costs.