What is high implied volatility mean

High implied volatility indicates that the market expects significant price swings or volatility in the future. It is a measure of the market's expectation of the likelihood of future changes in a security's price. High implied volatility suggests that investors anticipate large movements in the stock's price over the course of the next twelve months. This can be an important factor in options pricing, as it results in options with higher premiums. Conversely, low implied volatility suggests that the market anticipates relatively stable prices.