Option two will work great for squats, but you'll still be deadlifting from a small deficit.
People like the Reebok, and some guys liked the Sabo Goodlift (there's a thread about them). Sabo deadlift has received a lot of good reviews for deadlifting too, don't know much about squatting.
I would buy a flat shoe with a very thin sole if I were you (Sabo goodlift or deadlift).