Neither happens, IMO. Neither really needs to. Trey isn't Manny. It's not possible for him to get too expensive for even the cheap ass Orioles after next season. Even if he finishes really strongly and then has a 2019-esque season next year, he's not gonna cost more than about 4/$60M as a free agent. 5/$85M max. If that's too expensive, then he's already too expensive as someone looking primed for about $12M or so per year (for FA years, less in 2022 obviously).
I'd very much be in support of an extension for him. But I can't agree that the 3rd option of "do nothing, revisit later" isn't a perfectly acceptable route to take right now. It wasn't with Manny. He absolutely should have been signed years earlier. I'd have been waving a contract in his face as he was coming out of anesthesia after his first knee injury.
But what value is there in waiting? His trade value is at its highest right now if that's the tact you wanted to go. The longer you wait to extend him the costlier its going to get if that's the tact you wanted to take. If you think his performance isn't sustainable to near what he is doing now then you probably don't want to extend hi anyway so trade hi now to get the best value.
Just trying to understand what is to be gained by waiting?