I assume you are referring to an R/T clearance from the tower to an aircraft on the approach? We used to use a similar clearance in the RAF at training bases.
Basically, it is a clearance for the FI in an aircraft making a glide or instrument approach to complete either a landing, a touch and go or a go-around from that approach. The phrase 'the option' gives the student no clues as to what the instructor may require him to do, and allows that decision to be made at a late point in the approach.
Scroggs