Let's dispel the myth, "today's market is a good/bad market to . . ." one's timing and the market have little to do with one another. Either one is ready to buy a property or one isn't ready--and that happens in every market. People were buying during the previous seller's market, and people are buying now.
The decision of whether to do a lease-option versus rent is more a matter of one's taste, timing, resources, and 5-10 year outlook. In a way, one can view a lease-option as rent++ or "try before you buy" housing. One has a lease in either case; however, the key difference between the 2 is that the lease-option also gives the tenant/buyer the opportunity to purchase that property at a specific price (that's locked in for a certain amount of time). Of course, that opportunity to lock the price doesn't come for free--hence the option fee.
If you could see yourself living in that TH for at least another 3-5 years, then the lease-option might be better for you--especially if you also have enough to cover the option fee, first and last months rent, and the security deposit. Also, prepare to pay an additional amount per month (aka a rent premium) that will be applied towards the balance along with the option fee--provided you exercise that option. On the other hand, if you only see yourself living in that TH for 1 year or less, or if you can't afford the rent premium and option fee, then you should rent instead.