No. of Recommendations: 4
The thing with "if called away" is that it rarely happens.
Almost every single call that is in the money at expiration will be executed and assigned. In fact, most brokers will do it for whether or not you asked them to.
Since Feb or so I have Jan'25 $430 ones --- although the shares now having been several times a lot higher than the strike, so if those calls during the last half year having been repeatedly sold and bought several people having had the opportunity to execute them, but none did do that.
That's only because it makes no economic sense at all to exercise them. Last trade for the Jan '25 430s was $29.10. It makes no sense whatsoever to exercise that 430 call right now, you have an asset that is trading at $29, you execute it and buy shares from someone at $430, by doing so, you just evaporated $28 worth of time value in that option. The person assigned will be absolutely delighted that you made such a terrible mistake. Economically, it makes much more sense to sell the option at $29, and then use that $29 plus another $401 to buy the stock. Stock will cost you a net of $401 instead of $430!
And it is just that, the time value, that results in most options only exercising at expiry (in fact, European style options can only be exercised at expiry). There are, of course, exceptions. Sometimes on ex-dividend day, options may be exercised to "capture the dividend". And that only happens when it is economically beneficial to do so.
