If not for the thermal pad, I would do (1). Drag soldering is much faster, so less thermal stress on the component, PCB, and nearby components. (And frankly, it’s really easy!) But with the thermal pad there’s no real alternative to reflowing it.
So do (2), but just get proper solder paste. Prepare the pads (do NOT apply pressure while wiping solder wick as instructed in the video! Wick is not supposed to be wiped, just basically dabbed and lifted straight up, so as to not lift pads), clean them very well to remove flux residues, and then add solder paste and reflow. (Don’t melt wire solder onto the pads prior.)