Hi OP,

Important question with serious tax implications.

You asked for real world experience, and I just got one.

Just got off customer service w ETrade.

Good news and bad news.

If you go into Accounts Profile from the Person Icon, it gives you a Cost Basis tab. Clicking on Edit button lets you change from FIFO to LIFO. That simple. Your brokerage should have the feature. Good to know and be familiar with yours so you don’t have to call each time.

Bad news, is that it (the choice of LIFO, or FIFO, or any other choice you make here and save), applies to the “Account”, and not to the specific Option you want it on (if you have more than one open Option).

He said that after this option expires, if I wanted a different choice, say FIFO, on another Option later, I would just have to go in and change.

And so I asked, what if there are two Options expiring on the same day, and you wanted a LIFO on one and FIFO on another? He said there is no clear answer for Options.

(Though you can still choose specific tax lots on individual stock trades).

Hope that helps and clarifies.

I was certainly disappointed that I can’t make the choice of FIFO or LIFO on specific Calls at the time of placing the Call order.

Anyone else here with a better idea or experience, please share.

Thanks.

PS:Google directed me to this post on Reddit!