How to suggest spellcheck corrections for search input?

When user types in an invalid phrase in the search field (e.g. with a typo), server suggest corrections of particular words. Unfortunately, it does not suggest full phrases - only corrections to specific words.

Example:

User types in: some badlyy spelled worddz

Server suggests the following fixes:

  • badlyy - badly, bawdily, baldy
  • worddz - words, worded

How should I display these suggestions to the user?

Option 1

Mix these suggestions and display full phrases below a text field. Allow user to click them to search again. Something like "Did you mean ...?" in Google. It would result in the following suggestions:

  • some badly spelled words
  • some badly spelled worded
  • some bawdily spelled words
  • some bawdily spelled worded
  • some baldy spelled words
  • some baldy spelled worded

Pros: easy to implement.

Cons: too many options to choose from if there are many mistakes.

Option 2

Highlight invalid words with red in the text field and suggest corrections when user clicks them.

enter image description here

Pros: User can choose what to correct and what to leave.

Cons: I have not seen such solution anywhere; what should happen if user enters the field and modifies the word in red with a keyboard?

Option 3

Any ideas?

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