Over the past 50 days, the S&P absolute daily % price change was 3.82%. Less than one year ago (Feb 2008) the absolute daily % price change was a mere 0.33%.
It's no wonder that options are priced so high. In fact, one can easily argue that options were really inexpensive because the market was so volatile.
Adam (Daily Options Report) reminds us that just a few years ago "we went something like 2 years without a 2% move in the market in any one day. Now we don't even blink at a 2% up or down open."
Regarding the sale of options, he says: "Now they are a better sale now at mid 60's volatility than they were on
the way up. A MUCH better sale. But time will tell whether it's a great spot to unload options…"
As a buyer of iron condors, I agree.