The Orlando Magic have exercised their third-year team option on guard-forward Mario Hezonja, while also exercising their fourth-year team options on forward Aaron Gordon and guard Elfrid Payton.

Gordon played in 78 games (37 starts) last season with Orlando, averaging 9.2 ppg., 6.5 rpg. and 1.6 apg. in 23.9 minpg. Originally selected in the first round (fourth overall) of the 2014 NBA Draft by Orlando, he has appeared in 125 career regular season NBA games (45 starts), all with the Magic, averaging 7.7 ppg., 5.4 rpg. and 1.3 apg. in 21.3 minpg.

Hezonja played in 79 games (nine starts) last season during his rookie campaign with Orlando, averaging 6.1 ppg., 2.2 rpg. and 1.4 apg. in 17.9 minpg. He was originally selected in the first round (fifth overall) of the 2015 NBA Draft by the Magic.

Payton played in 73 games (69 starts) last season with Orlando, averaging 10.7 ppg., a team-high 6.4 apg., 3.6 rpg. and 1.22 stlpg. in 29.4 minpg.  He was tied for 12th in the NBA in assists, ranked 15th in assists-to-turnover ratio (2.64, 467/177) and 40^th in steals.  

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The Orlando Magic have signed guard Ramon Galloway.

Galloway spent last season playing in Italy with both OpenJobMetis Varese of the Serie A League and Fulgor Omegna of the SerieA2 League. In 26 games (20 starts), he averaged 11.7 ppg., 4.2 rpg. and 3.0 apg. in 29.1 minpg. Galloway has also played professionally in Germany.

Galloway played collegiately with South Carolina (2009-11) and La Salle (2011-13). As a senior (2012-13), he averaged 17.2 ppg., 4.6 rpg. and 3.7 apg. in 33.3 minpg. in 34 games (32 starts). Galloway was named to the 2012-13 All-Atlantic 10 First Team and led La Salle to the Sweet Sixteen in the 2013 NCAA Tournament.

The Orlando Magic have waived forward Cliff Alexander, forward Branden Dawson and guard Kevin Murphy.

Alexander (6’8”, 245, 11/16/95) played in two preseason games with Orlando, averaging 1.0 ppg. in 5.1 minpg. Dawson (6’6”, 225, 2/1/93) appeared in two preseason outings with the Magic, averaging 3.0 ppg. and 2.0 rpg. in 6.6 minpg. Murphy (6’5”, 185, 3/6/90) played in two preseason contests with Orlando, averaging 2.5 ppg. in 6.6 minpg.

All three players were originally signed as free agents on September 8.

Aaron Gordon was told by Frank Vogel he would like to use him as he did Paul George when he was head coach of the Indiana Pacers.

While Gordon's best position long-term may be power forward, the Orlando Magic will primarily use him as a small forward.

"It's definitely a compliment," Gordon said.

"I'm going to be myself and I'm going to play my game, and that's ultimately going to be the most beneficial for us if I play how I play, not try and play like anybody else. I love the idea of being more of a playmaker and taking on a bigger scoring role. That's something that I'm going to have to do for us to be successful and I'm ready for that."

Gordon made just 29.6 percent of his three-pointers last season.

The Magic hope Serge Ibaka's shooting at power forward helps with their spacing.

"We're going to ask him to do it all," Vogel said. "We're going to give him a lot of responsibility."

"It's going to be a process with him. He's not used to playing the three, but that's going to come. He's got the skills and the ability to do it, or I wouldn't be putting him in that spot. It's going to be ugly at times. But, hopefully, more times than not it's going to be pretty impressive. And I'm excited about that."

An MRI on Serge Ibaka revealed no structural damage in his sore knee, a result that has given his new team "peace of mind."

Ibaka will be available for Orlando's preseason game on Wednesday.

"Everything looks good," Frank Vogel said. "It's kind of what we felt, but it just gives everybody peace of mind."