What Does a High Implied Volatility (IV) Imply about Future Price Movement?

High implied volatility (IV) implies that the market expects the underlying asset's price to experience larger, more significant movements in the future, but it does not specify the direction. It indicates a higher degree of uncertainty or risk perceived by the market.

Traders are willing to pay a higher premium for options because the probability of the option expiring in-the-money is perceived as greater.