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When shares are sold at the strike price because your covered call was exercised.
Why It Matters
Getting 'called away' means your shares were assigned - the call buyer exercised their right to buy your stock at the strike price. This typically happens when your option is ITM at expiration. You keep the premium you collected, but must sell your shares even if you wanted to hold them longer.
Key Points
- Most likely to happen when option is ITM at or near expiration
- You still keep all premium collected from selling the call
- Can happen early if a dividend is larger than remaining time value
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Covered Calls
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Related Terms
Common Questions
When shares are sold at the strike price because your covered call was exercised. Getting 'called away' means your shares were assigned - the call buyer exercised their right to buy your stock at the strike price. This typically happens when your option is ITM at expiration.
Getting 'called away' means your shares were assigned - the call buyer exercised their right to buy your stock at the strike price. This typically happens when your option is ITM at expiration. You keep the premium you collected, but must sell your shares even if you wanted to hold them longer.
Most likely to happen when option is ITM at or near expiration
You still keep all premium collected from selling the call
Can happen early if a dividend is larger than remaining time value