*Option players boost bullish stance in gold, silver ETFs

*Silver ETF attracts multi-leg options trade

By Doris Frankel

CHICAGO, May 29 (Reuters) - Options players on Friday have stepped up their bullish bets on exchange-traded funds that track the performance of the prices of gold and silver, expecting precious metals to shine through year's end.

Gold prices climbed more than $20 this week as oil rallied to its highest level this year, while the dollar fell to five-month lows against a basket of currencies on signs of an easing of recession, boosting the value of gold as a hedge against the U.S. currency.

Gold futures rose above $980 an ounce on Friday to end near a three-month high. Silver prices tracked gold higher to a near 10-month peak of $15.63 an ounce, the metal's strongest level since August 8. Silver was at $15.61 an ounce, up 3.2 percent from its previous finish of $15.12.

"Fears over near-term deflation and long-term inflation have conspired to undermine the value of the dollar, boosting the appeal of precious metals," said Andrew Wilkinson, senior market analyst at Interactive Brokers Group in Connecticut.

"That appears to have attracted more option traders in gold and silver ETFs looking for a move higher."

In the ishares Silver Trust (SLV.P: Quote, Profile, Research), an investor appeared to have enacted a complex call and put combination in the January 2010 contract, expecting the ETF to rise in price by at least 23 percent by January expiration, Wilkinson said.