Let's say you want to make a straddle. The delta of your call is .75 and costs $2.00 and the delta of your put is -.25 and costs .50 cents. To set up your straddle, you need only by one call and one put for a total of $2.50, but you wind up with a bias position of .5 delta (long 50 shares if you did one to one). If you want to be delta neutral, you buy 3 puts to 1 call, but now you're straddle costs $3.50 - and that's a 40% increase over $2.50! It seems to me that if you make a delta neutral trade, your breakevens are much further apart then if you simply bought 1-to-1. Am I doing this right? If I am right, why would anyone (aside from someone managing a huge position) want to be delta neutral?