OPTION GREEKS : RHO (ρ)

RHO (ρ)

Rho measures the change in options price with unit change in rate of interest. If Rho of put options is -3.87 that signify that for each unit increase in interest rate, put option price will decrease by 3.87.

Rho important Points:

- Rho of Call Option is always Positive and Rho of Put Option is Negative.

- Rho of Call and Put Option is different.

- Rho is highest at ATM and decreases as Nifty moves away.

- Rho of Future is 0.

Buy Call	Rho Long
Sell Call	Rho Short
Buy Put	Rho Short
Sell Put	Rho Long