Traders have been snapping up bullish call options on gold and silver exchange traded funds amid a pullback in the precious metals ETFs.

Calls were active in the metals ETFs on Wednesday as January $190 calls in SPDR Gold Shares (NYSEArca: GLD) and January $35 calls in iShares Silver Trust (NYSEArca: SLV) were bought on weakness, said Paul Weisbruch, head of ETF/options sales and trading at Street One Financial.

Traders in gold ETF options are the most bullish since August as Europe’s debt crisis continues to shake global markets, Bloomberg reported Thursday.

Call options are contracts give an investor the right, but not the obligation, to buy an ETF at a specific price within a period of time.

Calls to buy the SPDR Gold Shares outnumber puts to sell by 1.5-to-1, the most since Aug. 8, according to a Bloomberg report Thursday.

“The gap, the third-widest in more than a year, has risen 6.5% this month, with ownership of June $220 calls showing the biggest increase. They are 28% above the ETF’s close yesterday of $172.07 [a share],” Bloomberg reported.

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