I was training a multi-commercial student yesterday, and requested "High speed taxi down Runway 27" to show my student engine failure procedures during the take-off roll (performed at or below 50% of VMC).
Tower responded back with, "Cleared for the option 27". We both look at each other,

and not knowing what to say to that, I respond with "Roger, cleared option 27".
I look up Section 8. Spacing and Sequencing, 3-8-1. SEQUENCE/SPACING APPLICATION on ATC Order JO 7110.65T, which states what I already know... "The “Cleared for the Option” procedure will permit an instructor pilot/flight examiner/pilot the option to make a touch-and-go, low approach, missed approach, stop- and-go, or full stop landing. This procedure will only be used at those locations with an operational control tower and will be subject to ATC approval."
What were my options, since I can't take off without a take-off clearance? Possibly a confused controller or a trainee? Anyone get this before?