Preflop: I'm assuming the straddle is mandatory. The times I've personally played 5/10 and 2/5/10 have been when the game was extremely soft. I mention that because at the stakes I typically play if the largest preflop value-raise I can expect my opponents to call is 3X BB then I am at minimum on the table-change list. So if this is a tough table with a typical open-raise of 3X the mandatory straddle then this is probably not the best forum to post this hand as people who usually play 2/5 and below (like me) won't have much experience here. If it's a soft game, then ignore what I've written up to now and raise more preflop.
Flop: As played, I'd bet slightly larger, but $40 is definitely not a mistake. Once raised I'd call with the intention of leading the turn.
I'm assuming that your opponent is not so bad preflop that he would call your raise from that position with AK and QQ (obvious 3bets) as well as K7 and Q7 (obvious folds). So with his likely range of hands being top pair, JT, 77, and bluffs I don't see a postflop TAG giving a check/raise action with any hand that KQ beats. The only advantage reraising gives you is blasting out the straight draw. By calling and leading the turn you give yourself a chance to A) get value out of Kx hands, B) give bluffs and Kx hands a chance to catch a little something that will cause them to lose more (eg: Ax catches top pair or Kx makes trips or a smaller two pair), and C) give yourself a slight chance of not going broke to 77. Betting the turn is better than checking because JT checking behind is the worst possible scenario for you if your opponent holds that hand.
Hope this wasn't too wordy.
Just my opinion...
Last edited by Moneyline; 04-23-2014 at 06:31 PM.