How Does the Concept of “Implied Volatility” Relate to the Bid Price of an Option?

Implied volatility (IV) is a measure of the market's expectation of future price movement and is the primary driver of an option's premium. A higher IV results in a higher option bid price, as the market is willing to pay more for the potential of a large profit from a significant price move.

IV is what the market is "implying" about future volatility.