The option Greeks measure different ways in which an option’s price can change. For instance, delta and gamma show how an option reacts to underlying price moves, while theta, vega, and rho measure the effect of time, volatility, and interest rates, respectively. This final installment of the Greeks series discusses the importance of vega and rho, two lesser-known Greeks that you might not have considered yet.

Vega, commonly ignored by options traders, measures an option’s sensitivity to implied volatility (IV) changes. Rho gauges the effect of interest rates and dividends — important variables, especially if you trade long-term options.