Cleared for the Option

The Aeronautical Information Manual has a Pilot/Controller Glossary that allows you to look up the definition of the words the controllers say. Not to be confused with the Chapter 5 of the AIM Air Traffic Procedures sections 2-4 that gives you an outline of what to say, and when to say it.

When you hear / ask for "cleard for the option/request the option" what that means is you can do any of the following

1. touch and go - land and depart on runway without stopping or exiting the runway
2. stop and go - land come to a full stop then take off from that runway
3. full stop , taxi back - land, exit the runway and taxi to same runway
4. low approach - make an approach to land but do not land and go around
5. 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.