Jacob discusses implied volatility and it's affect on option prices on today's episode of The Skinny On Options Math.
He starts the segment explaining that implied volatility is a factor of the Black-Scholes Model that is unknown, but if all other variables are provided we can solve for it. He goes into the notion that implied volatility has mean reverting properties, and that an increase/decrease in IV will increase/decrease an options price.
The difference between IV Percentile & IV Rank is also touched on, including the fact that if you trade using one of these measures, you can easily convert to the other even with their slight differences.
Jacob believes that with all things considered, the main takeaway here is that if we're going to look for useful information to structure our trades around, implied volatility and analyzing historical charts of implied volatility is a great place to start!