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
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