(From my latest journal entry for the MSN Strategy Lab. Take a look on the left at the current standings) In this volatile market, contracts on options have become increasingly more expensive. This is because the main pricing components of options are: expected rate of return, volatility of the underlying security and time until expiration. As [...] Related posts: Strategy Lab: Tough to Hit a Volatile Market (up 14%) Strategy Lab - Andrew’s Portfolio is #2 because of this: Strategy Lab: Make Wild Market Moves Your Friends