™A higher option price can imply higher volatility in a specified pricing model; this is not a guarantee that the stock will realize that volatility.
Options
Implied volatility
The volatility input reflected by an option’s market price under an option-pricing model.
Plain-English context
Put the definition to work.
Implied volatility depends on a pricing model and option terms, and is not a direction prediction or promised realized volatility.
Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. OIC — Technical Information