Should I install drywall panels parallel or perpendicular to ceiling joists?
With option 2 you have twice as much seam length running down the center of ceiling joists. This can be a real pain to keep everything aligned, especially when you have roof braces, overhead door brackets, and other structures holding the truss members rigidly in place. 

Also, some brands of drywall aren't designed to resist sag parallel to the mounting lines and should only be installed perpendicular to the framing.

For those reasons, along with what juicestain09 said, option 1 is far better.

One note... unless your wall is very straight, you may want to run the first row on a chalked line 24" off center, and cut both outer rows to fit. Cutting drywall is not difficult, and you may end up with a nicer fit. That said, you have 1/2" of coverage available from the wall panels, so maybe that's adequate.