Upside Purchased on Radioshack (RSH)

Shares of Radioshack Corp. (NYSE: RSH) ended the session down by 1.86%, trading at $19.51. The stock appears to have entered into a downtrend in recent trading; the stock is now struggling to hold onto the 200-day moving average.

Option trading was favoring the call side today. The July $22.50 call was purchased 4,800 times, on the offer, on open interest of 6,247 contracts. Call volume was running at 2.11x the daily average today.

Traders were likely positioning for possible upside due to the start of the 2010 Tour de France on Saturday, which Radioshack is competing in, lead by Lance Armstrong.

RadioShack Corporation is engaged in the retail sale of consumer electronics goods and services through the RadioShack store chain and non-RadioShack-branded kiosk operations. The company's stores are located in shopping malls and strip centers, as well as individual storefronts.