Options 1 and 2, as a practical matter would be combined. If BPA is selected at 3 (or even if there's a deal to maximize the draftee(s) ... Orlando with 6 and 11, for example), then the decision has effectively been made to have "a different conversation" between Dame and Cronin which means trading him for younger players, draftees and future picks (in some combination). Getting the major business done during the draft is optimal. And having the various options on the table before the draft begins is, IMHO, most reasonable. The needle is small enough to build a win now team that can actually have the chance to compete -- Dame's Ask (or demand in the nicest possible way).
Trying to decide if Jody shitty ownership makes me more or less inclined to want a Dame trade? Since she appears unwilling to pay tax that makes me think it's better to not try and acquire all NBA players for draft picks as we won't have the salary to build a contender. On the other hand I question if getting young assets in a Dame trade will even matter long term. Maybe better to just enjoy Dame last years with him scoring and accept the franchise won't contend either way.