PM mock - Currency management

[BldSwtTrs]

In the correction they say we should prefer 25-delta strangle over 50-delta straddle because the straddle, being at-the-money, is more expensive than the strangle being out-of-the-money.
However, the goal is to profit from expected volatility with no mention of minimizing upfront costs.
Aren’t 50-delta options more sensitive to the price movement than 25-dela options?
If so, wouldn’t our expected profit from the volatil market more important with the 50-delta options than the 25-options?

 

[jamespeer]

I can’t remember this question specifically, but given the information you have provided your logic is absolutely right. I can’t see why a Strangle would be preferred unless cost was an issue mentioned in the case. Unless the predicted volatility will be so high that the OTM would outperform the ATM on an after-cost basis? To know that you would need to know the prices of the options used. But I’m scratching around for reasons here