you would say…. waaaaaaaaaaaaaay out!

you wouldn’t like hold the “y” and say… wayuuuuuuuuuuuuuuuuuuh… out…. if you stretch the y… you are basically saying… yuuuuuuuuuuuuuuuuuuuuuuuuuuh at the end of way… which just sounds plain weird.

Neither of your submissions is correct. If you want to emphasize a word in print, you could use a larger, different, differently colored, bolder, italicized or underlined font for emphasis.

If you are wishing to speak the word emphatically, simply say whatever you can. I defy you to pronounce that word in two different ways, as shown in your question.