the Lookup Item from Recordset option is only available if you a Dynamic (Recordset Driven) Shopping cart.
Do you use a products database for your store?
if you dont use a products database, you will use a static cart that does not interact with the database. If this is the case, you probably don't need to enter the options to the options table either.
can you give a clarification on whether you are using a static or dynamic cart, this will help me in guiding down the right path for the options.