Neither structure is inherently better,it is really a question of relative pricing and ones assumption on price distribution and "stickiness"....
When I don't understand, I keep asking. Sometimes folks get annoyed and put me on ignore. But how can I learn if I don't keep asking?
Never would put you on ignore, I’m just saying. the question has been answered many times before, you just gotta put some effort in on the search bar my friend.
I did read some of the answers that is why the post. I ran butterfly sim on SPY using historical SPY and HV (as proxy for IV) going all the way back to 1993, with the same reward/risk ratio, the outcome of 121 actually was a little better than 132???? So, I am confused. Maybe my sim assumptions were wrong.
Thank you both for your answers. Essentially my sim showed they were about equal to first order. So, which one I should pick depends on second order effects. Perhaps stickiness. But how do I know if DELTA is sticky or not?
.sigma said it, albeit in a rather funny manner. Look up "Derman delta"; the paper isn't very long or complicated. ...at least on the surface. Getting sticky delta and how it applies in different situations is a horse of a different color.