Monday, December 26, 2011

Zero Coupon Bond Calculator

Zero Coupon Bond Calculator

Zero coupon bonds offer an opportunity to invest a small amount of money initially then get a large payment in a few years. Enter the final payout amount, the interest rate, and this calculator will determe the principal amount needed at the beginning.

Bond Income Calculator

Bond Income Calculator


Bonds offer a safer form of income than stocks. It is a debt obligation given by companies and governments available to investors. Bond prices are usually in denominations of one thousand dollars. The yield to maturity is the current yield of the stock based on its price. The initial rate is the coupon rate and that yield is available to initial investors. Subsequent investors receive the yield to maturity which is based on the coupon rate divided by the current market price of the bond. This calculator determines the yearly yield on a bond based on the price and it also determines the total income derived from owning the bond for several years.

Friday, December 16, 2011

RIMM Covered Call Trading Experience

Bought shares of RIMM after the Goldman Sachs upgrade at 19.50. Sold covered call at 20 for 1.78. Stock trickled down to 16 or so, bought back the call at 0.52. Sold the 15 call for 2. Stock went up to mid 17 then came down to 16. Bought back the 15 call for 1, then sold the 16 call with less than a week remaining for 0.56. Then the stock plummeted after disappointing earnings prior to options expiration on 12/16. Bought back the 16 call to close out everything for 0.01. Sold out of RIMM at 13.48. Overall, bought at 19.5 sold at 13.48. Lost 6 on the stock, then made 2.5 trading options.