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. A bond
position also may be called away by the issuer under call provisions that are
embedded in the bond indenture.
See called away in Wall Street Words
Used to refer to the forced sale of a security by an investor because of the action of another party. For example, the writer of a call option has the underlying stock called away when the call owner exercises the option. Likewise, a bondholder may have bonds called away by the issuer if interest rates decline and the issuer decides to redeem a portion of the issue before maturity. In nearly all cases, a call works to the disadvantage of the owner of the security.
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