Exercise, cash out, sell, and the expiry deadline

Your three options#

• Exercise: pay the strike in SOL and receive the tokens. No cap on the upside; keep the tokens or sell them when you choose. Best when your size is large compared with the pool.
• Cash out: one click. The program sells your tokens into the pool, keeps the strike, and sends you the rest in SOL. You need no SOL up front, but you get what the pool pays after price impact and fees. The app will not build a cash-out that would pay nothing.
• Sell the call: list your call NFT on POC's order book at a SOL price; change the price or cancel any time; anyone can buy it. 0.5% of the sale goes to POC. While listed, the call cannot be exercised.

Act before expiry, or let auto-exercise do it#

Exercise and cash-out stop working at expiry; after that the tokens go back to the vault. So in the last 10 minutes before expiry, POC cashes out every in-the-money call for its holder (auto-exercise). The proceeds and every rent go to you; the keeper takes nothing. A call that is out of the money is left alone, since it would pay nothing. If you want the tokens rather than SOL, exercise before the last 10 minutes. The portfolio page also warns you when an in-the-money call is 15 minutes from expiry.

What cash-out really pays#

In a pre-launch test a 1M-token $200K call with $99.50 of intrinsic value (coin at a $299.5K market cap) cashed out for about $79: the rest was price impact and fees in a thin pool. Larger positions lose more to impact; exercising avoids selling into the pool at that moment.

Above $1M#

The $1M limit only stops new sales. Your call keeps all of its upside; its tokens are already locked in its escrow.