John 1:1

I am new to the list and an intermediate Greek student. 
There has been much discussion of whether "theos" means God 
or divine. Since a form of "theos" is used twice in close 
proximity, are we to assume that:
1) they both mean God
2) they both mean divine, or
3) one, presumably the former, means God while the latter 
means divine?
Though a change of meaning is possible (or unconscious) I 
find it hard to believe. Can those of you more learned 
explain? By the way, I hold to the first choice. I assume 
that John could rely on his reader's acknowledgement of God 
and that he could impart knowledge about the Logos vis-a-vis 
D. Anthony Storm