Since there's not a lot of day-to-day volatility in interest rates, rho typically has a somewhat negligible impact on most option trades. Theta gauges the time value of an option. Theta defines ...

If the trader thought this $1 move might take place over two weeks, an options calculator can figure out the theoretical time decay on the option price using theta. With these two measures ...

Rho. The sensitivity of an option to a change in interest rates. Theta. The loss in value an option will experience due to the passage of time. As a quantification of time decay, theta is usually ...

benefiting from both volatility contraction and Theta decay. The strong strangle strategy is an options trading approach ...