Prearranged Trade?

Discussion in 'Options' started by tfrank32001, Oct 13, 2006.

  1. Since the CBOT doesn’t necessarily agree with me, can anyone tell me if the following trade would be considered “prearranged” under their current rules? Last night before the open of the night session (6:00 pm cdt) at 5:51, someone placed an order to purchase 11, 240 five year dec 106 calls at 4 ticks. Within a minute, two orders to sell at that price were entered, one for 1000 contracts and the other for 10,000. When the options market opened for trading at 6:02, the orders were instantly filled. Does this represent a prearranged trade?