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I would close the bail and set the hook.
If you're using a circle hook in theory the rod tip loading up should set the hook right? No open bail just be ready to get your rod before it heads down the hole I've never used a circle with Eyes just cat fishing and I keep my drive engaged and in a stout rod holder and the fish always hooks itself with no hook set needed just a good jerk after you pick up the rod to make sure it's set deep.
Once the float starts going down steady, reel slack, set hook. I've found its gotta be going down steady or you pull the bait out of the mouth of the fish.