An option is the government's choice, not yours. The contracting officer may exercise options only after making the determinations the FAR lists 1, and one of them is that the contractor's performance on this contract has been acceptable 2.
Where a contract uses the Option to Extend the Term clause, read any preliminary notice carefully: the preliminary notice does not commit the Government to an extension 3.
Bids2Bank's Deadlines page has an "Option year decision" type for the date the government decides whether to extend a contract 4.
Your record at the end
Past performance evaluations shall be prepared at least annually and at the time the work under a contract or order is completed 5. Those ratings and narratives are relevant information for future source selections 6.
Closeout follows physical completion. Files for firm-fixed-price contracts, other than those using simplified acquisition procedures, should be closed within 6 months after the date on which the contracting officer receives evidence of physical completion 7.
The recompete starts before closeout
If you are the incumbent, competitors can see your end date: Bids2Bank's own Contracts Ending Soon lists contracts by their current period-of-performance end 8.
Worked example. Contractor J's services contract has one option year left. Ninety days before the option decision, it asks the contracting officer whether there are any open performance concerns, fixes two late-report issues, and starts its recompete capture plan the same week.
Track option dates in Deadlines →
Indented paragraphs are invented worked examples. Tool links open Bids2Bank and need a free account.