A Greek that measures an option's price sensitivity to changes in interest rates.
Rho measures how much an option’s premium is expected to change for a one percentage point change in the risk-free interest rate. Call options typically have positive rho while put options have negative rho. Because rho’s effect is usually small compared to delta, gamma, theta, and vega, it is generally the least closely tracked Greek by retail options traders, though it becomes more relevant for longer-dated contracts.
Got a question or a feature you wish existed? Drop it in our Telegram community, the Stolo team is right there reading every message.