Glossary term
Rho
The options Greek measuring sensitivity to interest-rate changes; negligible for most short-dated positions, relevant for LEAPS.
Rho is the options Greek measuring how much an option's price changes per 1% change in interest rates. It is negligible for most short-dated positions but becomes meaningful for long-dated options such as LEAPS, where the rate environment affects the cost of carry. Rho is the least-watched Greek for typical premium-selling strategies. See Greeks 101.