A secured put option got assigned eg SQQQ put $10.50 (E-Trade). Cost of this option is eg $5
A buy transaction got executed $10.50*100 = $1050
From what I understand, the cost basis of these shares is ( $1050-$5)/100 = $10.45
However, Etrade reported a different cost basis eg $10.25.
And their comments is " ... The cost basis for this option utilizes the Fair Market Value of the option at the time of assignment as a part of the cost basis. Our Cost Basis Team has confirmed this is reporting accurately. .."
What is the correct way for computing this cost basis ?
Pls advise.
Thanks!
