I found this posting where the individual had the same problem. Turns out that he needed to install “Web Deploy 3.5 for Hosting Servers” on top of the other Web Deploy packages in web platform installer. Once I did this and restarted IIS the option became available.
Seems counter-intuitive to me since I am not a hosting provider and just wanted to host my application on my own server. I am not sure why the Web Deploy 3.5 package was not enough.
I had additional problems getting Web Deploy configured. This article on Web Deploy error codes helped me troubleshoot the problem. Another article on Configure the Web Deployment Handler was essential in solving the permissions issue allowing the web deploy user to create directories and files.