If you allow your kid to get away with the 3rd option, then your kid now knows that your choices aren't genuine. None of these kind of methods work if you let them know that when you say there are two alternatives there really are three.

And I've seen this work often enough when we've had friends of my son come over that we often see act up around their parents, but that will try that shit once with us and then follow our sons cue once they see that all they achieve is getting ignored, that I tend to think that whether this works or not is more often down to follow-through.

That doesn't mean it's a one size fits all solution. You do need to adapt what kind of options you present, and how you respond if they try to push the boundaries - kids are not stupid; if you keep offering "options" when they know there are other alternatives that are on the table if they say the right things, then they'll try to challenge you for it.