First, I have and 1986 Oldsmobile Cutlass Supreme

When I go to buy an AC compressor for my car, I get 2 options:

12 O'clock coil position
OR
9 O'clock coil position

I assume it is where the lines from the accumulator and condensor go into the compressor? If not how can I tell?

The coil is in the clutch and its what engages the compressor from the pulley. The position usually refers to where on the front the plug for the coil is; at 9 or 12.