Options Crash Course: The Greeks - July 2, 2021 - Rho in Options Explained

published 3 weeks ago by tastytrade, Inc.

As the Greeks Crash Course presses on, here in episode #5 we cover the Greek that often gets completely forgotten - Rho. With Rho capturing how an option price will change as interest rates change, it makes sense that Rho is far less important than any of the other Greeks. As active traders in the economic climate that we live in today, any changes (or even anticipated changes) to interest rates are going to be so small and trivial that they will quickly be overshadowed by almost any other metric.

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