I did not see this mentioned in prior posts, and it's been "bugging me". I know the brokers are hyping ETF's and ETF options. But given the fact that index options have favorable tax treatment of the profits and greater leverage and lower commissions , why would a trader take ETF option positions when a comparable index option is available ? My first example would be RUT vs. IWM. The only issue I can think of is liquidity and spreads.