Looking at this post as reference, say I have the following: Added 100 shares of ABC at $50 on Jan 1, 2020. (Lot 1) Added 100 shares of ABC at $60 on Oct 1, 2020. (Lot 2) Sell 1 covered call contract with ABC as underlying with expiration of Feb 20, 2021 on Jan 3, 2021, using the FIFO strategy with the broker. Let's assume it's not deep ITM. Would selling the covered call modify the holding period on either lot? Thinking no, as Lot 1 would be long-term and Lot 1 would be called away if the call is exercised. If I instead used the Highest Cost strategy, the option transaction would be considered qualified, correct? That is, Lot 2 would be called away if the call is exercised, right? At what point is the FIFO vs Highest Cost strategy applied? When the call contract is sold or when shares are called away? Assume everything is in the US.

FIFO vs Highest Cost and qualified covered calls

Looking at this post as reference, say I have the following:

Added 100 shares of ABC at $50 on Jan 1, 2020. (Lot 1)
Added 100 shares of ABC at $60 on Oct 1, 2020. (Lot 2)
Sell 1 covered call contract with ABC as underlying with expiration of Feb 20, 2021 on Jan 3, 2021, using the FIFO strategy with the broker. Let’s assume it’s not deep ITM.

Would selling the covered call modify the holding period on either lot? Thinking no, as Lot 1 would be long-term and Lot 1 would be called away if the call is exercised.
If I instead used the Highest Cost strategy, the option transaction would be considered qualified, correct? That is, Lot 2 would be called away if the call is exercised, right?
At what point is the FIFO vs Highest Cost strategy applied? When the call contract is sold or when shares are called away?

Assume everything is in the US.

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