How Does a High Implied Volatility Affect the ‘Vega’ of an Option?

Vega is the Greek that measures an option's sensitivity to changes in implied volatility. Generally, options with a longer time to expiration and those closer to at-the-money have a higher Vega.

Therefore, a high implied volatility environment makes the option's price more sensitive to further changes in volatility, meaning the option will have a high Vega. A high Vega means the option price will increase or decrease significantly with small changes in IV.