If you act early when total cases are in single or low double digit, 2 is a choice you can make. But for most of the world, that option is gone. Now the choices are 1 and 3.

I like choosing lock-down to reduce no of wild cases to a small number followed by option 2. I believe that is what they are planning in Wuhan and China. They'll lift off the lock down gradually but will continue with aggressive monitoring/testing and tracing. This will bring back the economy while still keeping the risk of epidemic.