What Is the Difference between a “High IV Environment” and a “Low IV Environment” for ATM Option Buyers?

In a high IV environment, ATM option buyers pay a higher premium due to inflated time value, making the breakeven point harder to reach. In a low IV environment, buyers pay a lower premium, making the breakeven point easier to reach.

Buyers generally prefer low IV environments to purchase options, as it reduces the cost of the trade.