What happens when I purchase 1000 lots of Deep OTM options? Prices peak?

General
1

Hi,

The spreads in OTM and Deep OTM seems huge. What I fear is that, What happens if I decide to purchase 1000 lots of Deep OTM Call with price Rs. 2.

Obviously the market makers would keep raising the Ask price when the order gets filled right? Similarly would they reduce drastically when we sell in bulk?

2

If it is deep OTM with no or little volumes then it is better to keep limit orders and slice your order into many small orders.

But definitely once you entered a trade algo systems will notice it and try to manipulate with bid and ask prices.

Never place market orders in the above type of contracts.

3

Anybody has any idea?

4

I think even ATM options’ spreads are high. But I am afraid what if price moves leaving my limit order untouched. Developing quick fingers and ability to modify the LIMIT order till it gets executed would be the best thing?
Also if I keep my LIMIT price LTP- 0.05, How could the algorithms bid smaller than that?

5

Also, I see “Disclosed Quantity” in PI order window. How does it work? Is it to confuse the algos?
If I place a LIMIT order at LTP with 10 lots and disclose it as 1 lot, what could be the success rate that all would execute at the same time?

6

Disclosed quantity option is not appllicable for F&O it is only for equities.