This is panicked buying and/or short selling.  First of the month could also play a role.

This is a difficult move for the SPX strategy.  I am remaining patient and will wait for the pullback.  If one does not come, I will work any ITM positions to move them to higher strikes with market swings.

The key is being comfortable holding these positions for many days or weeks. If it does not affect your ability to enter other trades, then patience should prevail.  If it does limit you, then you should probably avoid ITM rolls completely.  If you sold the one this morning, I would still wait for a swing low this week to exit near break-even.

Feel free to comment here or email me if you have questions.

-JP