I'm still a little confused here.
Let's say I bought the straddle position on SPY.
The market dives 2%. Thus, I sell my call position at a loss, but I hold my put, which is making money.
A few days later my put position is back where it started. It's still open and I'm now at risk if the market continues to go up. How does this make me money? In the mean time I'm dealing with time decay on my open position.