Option Greeks
Rho (ρ)
The interest-rate Greek — usually the quietest one, but worth knowing.
Definition
Rho measures how much an option's price changes for a 1 percentage-point change in the risk-free interest rate. Calls generally have positive rho; puts have negative rho.
Rho is small for short-dated options and grows with time to expiry — meaningful mainly for long-dated positions.
Behaviour
- Usually the smallest of the Greeks for short-dated options.
- Matters more for longer-dated options (LEAPS) and during big rate-regime shifts.
A quick example
A long-dated call with rho 12 would gain about 12 if rates rose 1%, all else equal. For a weekly NIFTY option, rho's impact is typically negligible next to delta, theta and vega.
Why it matters
For most intraday and weekly options traders, rho is a minor consideration — but it rounds out the Greeks and becomes relevant for long-dated positions and when central-bank policy shifts sharply.
See all five Greeks together
TradePulse's Greeks calculator computes delta, gamma, theta, vega and rho instantly.