Called Away

DEFINITION of 'Called Away'

A term used to describe the elimination of a contract due to the obligation of delivery. This occurs if an option is exercised, if a redeemable bond is called before maturity or if a short position held in a security requires delivery.

BREAKING DOWN 'Called Away'

For example, if an investor has written a call option and the holder of the option exercises it, then the option has been "called away" and the writer has to complete his/her obligation to the contract.

When an investment is "called away", it can result in an investor missing out on potential gains in the underlying asset.

RELATED TERMS
  1. Bond

    A debt investment in which an investor loans money to an entity ...
  2. Call

    1. The period of time between the opening and closing of some ...
  3. Writer

    The seller of an option who collects the premium payment from ...
  4. Callable Bond

    A bond that can be redeemed by the issuer prior to its maturity. ...
  5. Exercise

    To put into effect the right specified in a contract. In options ...
  6. Maturity Date

    The date on which the principal amount of a note, draft, acceptance ...
Related Articles
  1. Options & Futures

    Callable Bonds: Leading A Double Life

    Find out more about these dangerous and exciting cousins to regular bonds.
  2. Options & Futures

    Options Basics Tutorial

    Discover the world of options, from primary concepts to how options work and why you might use them.
  3. Options & Futures

    Solving Mixed Options Problems On The Series 7

    Learn to ace the questions that involve both options contracts and stock positions.
  4. Term

    The Difference Between a Long and Short Position

    Stocks are owned in a long position and owed in a short position.
  5. Investing News

    AQR Capital Management: Investment Manager Highlight

    Discover the investment strategies and secrets of hedge fund powerhouse AQR Capital Management LLC in the alternative investment space.
  6. Options & Futures

    When Should I Sell A Put Option Vs A Call Option?

    Beginning traders often ask not when they should buy options, but rather, when they should sell them.
  7. Investing News

    Performance Review - U.S. Fixed Income in 2015

    Review the performance of the U.S. fixed-income securities in 2015, from the relatively strong U.S. municipal bond market to the calamitous high-yield space.
  8. Bonds & Fixed Income

    Do Long-Term Bonds Have A Greater Interest Rate Risk Than Short-Term Bonds?

    The answer is yes, and there are two main reasons why.
  9. Bonds & Fixed Income

    Comparing Yield To Maturity And The Coupon Rate

    Investors base investing decisions and strategies on yield to maturity more so than coupon rates.
  10. Investing News

    Natixis Global Asset Management: Investment Manager Highlight (NTXFY)

    Read about the investment operations of Natixis Global Asset Management, a multiaffiliate manager with $870 billion in worldwide assets under management.
RELATED FAQS
  1. Besides a savings account, where is the safest place to keep my money?

    Savings accounts are safe because investors' deposits are guaranteed by the Federal Deposit Insurance Corporation (FDIC) ... Read Answer >>
  2. What is a derivative?

    A derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset, ... Read Answer >>
  3. What is after-hours trading? Am I able to trade at this time?

    After-hours trading (AHT) refers to the buying and selling of securities on major exchanges outside of specified regular ... Read Answer >>
  4. What are the maximum Social Security disability benefits?

    Find out the maximum Social Security disability benefits for qualifying individuals and couples in 2015, including who is ... Read Answer >>
  5. How do I calculate the future value of an annuity?

    Find out how to calculate the future value of an ordinary annuity or an annuity due, including how the power of compounding ... Read Answer >>
  6. Have hedge funds eroded market opportunities?

    Learn why there is still plenty of opportunity for investors even though hedge funds have grown substantially. Read about ... Read Answer >>
Hot Definitions
  1. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  2. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  3. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  4. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  5. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
  6. Economies Of Scale

    Economies of scale is the cost advantage that arises with increased output of a product. Economies of scale arise because ...
Trading Center