I'd choose number 1, it's simple, so it can be quickly and easily entered into the game, it gives characters a LOT of freedom to do what they want, while allowing other PC's to know they are cloaked.
oh... and if you have another idea that is NOT part of 1, 2, and 3... please feel free to say so... we shouldn't limit it to just three choices to choose from... but i have no other options at this moment... so i will agree with Telk and vote for 1 as well
