Say I have 200 shares of XYZ in my account. 100 shares would be considered long-term (held for longer than 1 year) and the other 100 shares I acquired a week ago. If I write one call option against my 200 shares, is it safe to assume that if the call gets exercised, my broker (IB) will sell the 100 shares held short-term rather than long-term to minimize taxes?
You can choose LIFO or FIFO. https://www.interactivebrokers.com/...tusersguide/reports/tax_basis_declaration.htm