Does sp_indexoption cause index rebuilds?
Under the covers sp_indexoption just does an ALTER INDEX as well.

My recommendation would be to forget about sp_indexoption and just utilize ALTER INDEX:

alter index IX_YourIndex
on dbo.YourTable
set
(
    allow_row_locks = on
);
go


As noted in the BOL reference for ALTER INDEX, when you specify just the set options:


  Specifies index options without rebuilding or reorganizing the index