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"exercise the option" is a correct and commonly used phrase in written English.
It means to make use of a right or choice that has been given to you. Example: The company gave its employees the option to work from home or in the office. John decided to exercise the option to work from home due to the current pandemic.
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The producers said that the last two weeks of the originally announced run were optional and that they had decided not to exercise the option.
Declined to exercise the option on OF Ron Gant.
Hampshire recently decided to exercise the option; hence the notices.
Last month the company announced it would exercise the option.
He has said earlier this year that he might exercise the option to sell the stake.
If the Red Sox do not exercise the option, they will pay Martinez $2.5 million.
Hasek becomes an unrestricted free agent if the team chooses not to exercise the option.
If LIPA decides to exercise the option, the system would become entirely public.
Mr. Michael, meanwhile, conceded that he had never had a single tenant exercise the option.
"You can continue to exercise the option right through the expiration date," he added.
But Toronto's new owners wanted to make sure he did not exercise the option.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com