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I would use the first method, but underline or bold the code words, italicization is too subtle. We (the reader) are supposed to be in on the trick, so it should not be so subtle that we miss it.
Answer
#4: Attribution notice removed
Source: https://writers.stackexchange.com/a/31165 License name: CC BY-SA 3.0 License URL: https://creativecommons.org/licenses/by-sa/3.0/
#3: Attribution notice added
Source: https://writers.stackexchange.com/a/31165 License name: CC BY-SA 3.0 License URL: https://creativecommons.org/licenses/by-sa/3.0/