Called Away

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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.

INVESTOPEDIA EXPLAINS '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. Call

    1. The period of time between the opening and closing of some ...
  2. Bond

    A debt investment in which an investor loans money to an entity ...
  3. Maturity Date

    The date on which the principal amount of a note, draft, acceptance ...
  4. Exercise

    To put into effect the right specified in a contract. In options ...
  5. Writer

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

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