Follow-up trade of the week: YY June earnings (Buying the dips and selling the rips)

My previous YY calls were up nearly 70% when I sold them last Thursday May 31.  But as the market has it, sometimes things are not as they seem.  I mentioned last week that their closest competitor MOMO beat earnings and was rocking 4-5% gains every day last week.  And with spin-off of their Sports Channel HUYA rocking 5-10% gains for multiple days, some of the people on Twitter and various bulletin boards think YY should be in the 140-150 range.

So going against one of my rules not buying back stocks I just sold, I looked back at YY again and bought some on Friday, June 1.  IS it worth it?  I waited for the dip, and yes it dipped, and got back in.  This time, I picked up the 110 calls that cost me about $10 per contract.  I decided to hold this one till earnings.

Then comes Monday morning.  YY is up nearly 10% and then pulls back to around 5%.  I decide to take the profits today.  Another 5 calls with a profit of 60% gains.  Definitely selling in strength.  This thing is still slated to be 140-150.  I'm selling a day early for earnings, locking in profits is also a good habit to have, especially in this volatile market. 

This was a "Buying the dips and selling the rips" scenario, that I think worked in my favor.  But as always, it could have turned on me at any time.  Sometimes the dips continue to dip and you end up with a falling knife, but in this scenario, I think enough big players wanted in the action.  At least that was my guess.

Happy investing.  Also in play this week: $FIVE $MU $ACN (all June Earnings).