called away investment & finance definition
Eliminating an underlying security position by exercising a call option. A common stock position may be called away if a short call option is exercised.
Called Away
The process whereby a seller of a covered call option is obligated to surrender the underlying stock to the option buyer at the strike price of the option sold.
Called Away
Investment Dictionary:
Called Away
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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.
Called Away - The process in which a call option writer is obligated to surrender the underlying stock to the option buyer at a price equal to the strike price of the call option.
Called away
Convertible: Redeemed before maturity.
Option: Call or put option exercised against the stockholder.
Sale: Delivery required on a short sale.
Called Away
When a call or put option is exercised against the stockholder. ...
Candlestick Chart ...
called away Term used to describe a contract that is ended because of the obligation of... called bond A callable or call bond that the issuer has chosen to redeem before the maturity... Cambist A banking, money changer or broker.
As a call option hits a strike price the stock can be called away. On the other hand, with a put option the shares can sold to someone else.
6% return in four months if your stock is called away from you at $65. Plus, you would receive at least one dividend payment. The call option, meanwhile, pays you an effective 3.3% yield in just four months ($2 divided by your $60 purchase price).
Dividend-paying stocks: It may be weeks until your covered call expires, but if it's in the money your stock is likely to be called away the day before the company pays its quarterly dividend.
If you sell a call and you own the stock, then you have the stock should it be called away from you. If you do not own the stock, this is known as being 'naked' because you do not have an offsetting position.
Return if Exercised
The return that a covered call writer would make if the underlying stock were called away.
The covered call, by way of contrast, will require that investors either buy back the call and sell the stock or allow the stock be called away. (All these transactions entail commissions.) ...
Reinvestment Risk: Reinvestment risk is the risk that funds will have to be reinvested in a lower interest rate security if the original security is called away.
exists in many preferred shares to provide the issuer with the ability to redeem their preferred stock in the future at some point. Preferred yields include a premium to compensate the investor for the added risk that the security may be called away ...
 See also: Stock, Option, Call, Share, Investment
  
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