Tuning a query to fetch all the records in a day with certain status
B-tree Index on Status won't help - it has 3 distinct values, and full table scan will be much faster. Bitmap index should work better in such case, but TRANSACTION table name implies lots of DML , so it shouldn't be used. 

Some improvement may be gained by partitioning transaction table by status, and then create local index on created_time. In a sense it's similar to (3), but don't require application changes, and moving rows to proper partition is done by the engine itself. However, it is quite an expensive option, and should be used for really huge databases .

In my opinion, index on created_time will work just fine for most of the cases.