I think your no. 1 option is best, but since you want to make three new plants maybe 2 is better. I would cut the entire branch, leaving about a 6" piece on the tree which will eventually branch out. You can root all pieces, even the tipless one.
I would remove (clip, not tear) all leaves after you cut the branch; leaving them on can really dehydrate the cutting, and they will fall off eventually anyway.
Good luck!
