When you hear / ask for "cleard for the option/request the option" what that means is you can do any of the following
- touch and go - land and depart on runway without stopping or exiting the runway
- stop and go - land come to a full stop then take off from that runway
- full stop , taxi back - land, exit the runway and taxi to same runway
- low approach - make an approach to land but do not land and go around
- go-around - decide for whatever reason not to land and abort the landing
"Closed traffic" or "remain in the pattern" means you will be doing successive loops in the pattern landing.