Silver coin sales are shining. According to a report from the website Commodity Online, total sales of silver bullion by the U.S. Mint hit a 26-year high of 4,588,000 ounces in January. That buying comes despite, or perhaps because of, the near 7% slide in the price of silver so far in 2011. To be certain, the robust sale of physical silver via U.S. Mint-issued coins does convey the public’s strong appetite for silver. But does the strong demand for silver coins signal a top in the sector, or are we about to see another big bullish push? Fortunately, options players have plenty of choices to take advantage of either side of this trade.

Perhaps the easiest way to play silver is to buy options on the four biggest exchange-traded funds (ETFs) tied to the fortunes of the precious metal. The most basic of these is the iShares Silver Trust (NYSE: SLV), a fund pegged directly to the spot price of silver bullion. There’s also the silver mining stock ETF, the Global X Silver Miners (NYSE: SIL), which contains the biggest companies in the silver mining sector.

If it’s leverage you’re after, then you need look no further than the ProShares Ultra Silver (NYSE: AGQ). This ETF is designed to deliver performance equal to twice the silver bullion spot price. On the flipside of the silver coin you have the ProShares UltraShort Silver (NYSE: ZSL). This is a leveraged ETF designed to deliver twice the inverse performance of the silver bullion spot price.

Silver Chart Jan 20

By far, the silver ETF with the heaviest options action is the iShares Silver Trust. For example, open interest in the SLV Feb 30 Calls is 23,757, while open interest in the SLV Feb 25 Puts is 51,773. By comparison, open interest in the Global X Silver Miners SIL Feb 30 Calls is just 37, while the SIL Feb 25 Puts is 334.

When it comes to leveraged silver ETF options, there’s decent action in both the ProShares Ultra Silver and the ProShares UltraShort Silver. For instance, open interest on the Ultra Silver AGQ Feb 140 Calls is 152, while open interest in the AGQ Feb 140 Puts is 121. The ProShares UltraShort Silver Feb 12 calls had open interest of 2,377, while the ZSL Feb 12 Puts saw just 98 contracts.

So, whichever way your silver leanings may go, there’s plenty of options action available for you to get positioned in the sector. Of course, you could always go buy some silver coins, but somehow that just doesn’t seem like the kind of trade an options player finds very gratifying.

DISCLOSURE: Jim Woods has no current positions in any of the above mentioned securities.