Index vs ETF tax.

How it works

Index options are taxed 60/40 under Section 1256 regardless of holding period; equity and ETF options are short-term. The index figure is 60% at the long-term rate for your bracket (0%, 15% or 20%) plus 40% at your ordinary rate. State tax is added flat to both. Brackets are simplified; net investment income tax, deductions and loss carryovers are ignored.

Educational, not tax advice. Consult a tax professional about your situation.