Tip #2:

Exercise Your Right to Profit

Buy calls to initiate a long stock position.

If you buy a call at the $30 strike, then no matter how high that stock trades during the life of your options contract, you can buy shares at $30 right up until expiration. Plus, you’re not obligated to buy the stock, and you can close the trade at any time without touching a single share.

Even better: If the stock drops, the most you can lose is what you spent to buy the calls.