Good coding practice for object init

Question

We have a code that requires initializing instance of the object for each item in the loop. I have following option in mind. Please advice which one is the best option. TIA
Option 1
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public class AThread extends Thread {
private ObjectA var1 = null;
private ObjectA var2 = null;
public AThread() {
this.var1 = new objectA();
public void run() {
while ( ... ) {
if (var2 != null) {
var2 = null;
var2 = var1;
var2.callmethod();
Option 1
=======
public class AThread extends Thread {
private ObjectA var1 = null;
public AThread() {
public void run() {
while ( ... ) {
var1 = new objectA();
var1.callmethod();
var1 = null;
}

Answer 1

1. If in the future, you post code, you can make it much more readable by enclosing it in the [code][/code] tags.
2. Why not implement Runnable instead of extend Thread? You're not creating a new type of thread, so it is more "OO"-sensible to create a new Runnable and run it.
3. In the first Option 1, you might as well just be doing
while (...) {
  var1.callMethod();
}Assigning the reference to another variable does not create a new instance of the object, so it is not worthwhile to create a new reference to it just to call its methods.
4. In option 2, setting the object's reference to null at the end doesn't really help anything, because the object is going out of scope anyway and will be destroyed.
Your question, really, between the two options, is as follows: should you recreate and destroy the object for every iteration through the loop, or just call the method multiple times?