> For the complete documentation index, see [llms.txt](https://docs.sharptrade.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.sharptrade.fi/sharp-options/options-lifecycle-and-exercise.md).
# 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)
Option Exercise
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!
Exercise via Orca
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!**