Is option trading reported in the same manner as normal stocks OR is there a difference ?Also, do we require a separate K1 form for ETFs like SQQQ and TQQQ ?

It depends. You may or may not have a tax consequence when you exercise an option:

• When you exercise an incentive stock option (ISO), there are generally no tax consequences, although you will have to use Form 6251 to determine if you owe any Alternative Minimum Tax (AMT).
• However, when you exercise a non-statutory stock option (NSO), you're liable for ordinary income tax on the difference between the price you paid for the stock and the current fair market value.

Then, when you sell stock you've acquired via the exercise of any type of option, you might face additional taxes.

• Just as if you bought a stock in the open market, if you acquire a stock by exercising an option and then sell it at a higher price, you have a taxable gain.
• If you satisfy the holding period requirement, by either keeping the stock for 1 year after exercising the option or 2 years after the grant date of the option, you will report a long-term capital gain, which is usually taxed at a lower rate.
• If you don't meet the holding period requirement, your gain is considered short-term and taxable as ordinary income.

Please see this TurboTax article for more information on options. 

There are different types of ETFs. Depending on how the fund is structured, the tax treatment and tax forms may be different. Certain investment products, including Commodity ETFs, are structured to operate as partnerships. They issue a Schedule K-1 to each partner (i.e., investor) to report their share of income, gains, losses, deductions, or of any other taxable event.

If the investment fund is structured so that issuing Schedule K-1 is not required, you should receive other information returns based on the type of income received: Form 1099-INT for interest, Form 1099-DIV for dividends, and Form 1099-B for stock sales. If you receive a Schedule K-1, you may be taxed on fund income when you don't have any sales.

See this TurboTax article for more information on reporting forms for investment income.