# Options Lifecycle & Exercise

Shortly, the Options Lifecycle can be described in three stages with two final results

1. The lifecycle of an option begins with **order creation**, where a user places a request to buy or offer to sell an option contract, awaiting confirmation from another user. 
2. Once the order is filled, the **option is created**, and the buyer pays a Premium for the right to buy (call) or sell (put) the asset at a specified Strike Price. 
3. Considering if the option becomes profitable and the buyer exercises it or not
   1. The buyer can **exercise** the option anytime before expiration: exercising a call buys the asset while exercising a put sells it. 
   2. If not exercised, the option **expires** worthless and the seller can redeem the provided asset while keeping the premium.

All you need to start trading options is any Solana wallet and $USDC or chosen asset (to sell calls).

### Options Exercising

As mentioned in Options Basics there are two ways to exercise profitable option: Manually (Physical Settlement) and via Orca (Cash Settlement)

<figure><img src="/files/3SYyXipq1G5d2NKIzIqz" alt=""><figcaption><p>Option Exercise</p></figcaption></figure>

1. Manual exercise\
   The buyer purchases the actual asset for the full option price and receives the asset.
2. Exercising via [Orca](https://www.orca.so/)\
   The buyer receives the profit in $USDC, which is the difference between the Strike Price and the market price, without a need to have the full amount to buy the asset. \
   This allows everyone to trade with minimal investment!&#x20;

<figure><img src="/files/6oeLjI6ulz4iBSddEhKR" alt="" width="375"><figcaption><p>Exercise via Orca</p></figcaption></figure>

Now, you are ready to give it a try! Go on and buy/sell some options or create a few new ones!

**Stay Sharp and Study Options!**


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