[darthtrader]

here is an example from Options as A Strategic Investment:

XYZ common, 50
XYZ july 50 call 3
XYZ july 50 put 2

"If one purchased both the jully call and july 50 put, he would be buying a straddle. This would cost 5 points, plus commisions. If the underlying stock is exactly at 50 at expiration, the buyer would lose all his investment since both the put and all would expire worthless."

Basically, to make any money with that straddle you add up the premium you paid and add and subtract it from the underlying. If the stock is between 45 and 55 at expiration you would have a net loss. The kicker is the more volatility the higher the premium is going to be.
To me options are so deceptive and complex that the only way to play them is to be on the other side of that trade so your collecting premium and not paying it out.