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.