The person doing the trade would have alread owned shares (most likely 2005 shares) in Oakton which were bought at a much higher price.
By selling at $3.06, they have crystallised their capital loss in time for the financial year, and have purchased the same amount of shares back at $3.04.
So the net effect after the transaction is that the person holds the same amount of shares in Oakton, but has crystallised a capital loss.
The reason he or she bought an extra 2005 shares before selling 2005 shares is to avoid the risk of the share price "running away from him". If he sold the 2005 shares first, the share price might keep going up and he wouldn't be able to buy back into the 2005 shares at the same price he sold at - which is very wise and sensible given that Oakton is strongly surging upwards at the moment. The person has also "scalped some of the spread" by makeing a 2 cent profit for his efforts.
This is a very common practice - i have done exactly what this person did a few weeks ago in a different stock for the same very reasons.
Cheers,
Baphomet
OKN Price at posting:
0.0¢ Sentiment: None Disclosure: Held
