This should be illegal

I have noticed a new twist to options bid ask pricing. Lets say I see a bid ask spread of 1 bid 1.5 ask and I put in an order to buy at 1.10. In the past that order would be reflected or filled but nowdays the minute I enter that order a bid of 1.11 apears one penny above my price. when I cancel my order for 1.1 bid the order for the 1.11 vanishes instantly and its back to 1 bid then I put one in a new order at 1.15 bid and immediately a bid of 1.16 apears -- always 1 penny above mine. When I cancel this 1.15 bid order of mine, again immediately the 1.16 reverts to 1 bid. Anyone else notice this? Same in reverse for sell. To me this seems like front running and predatory programs not allowing the free market to operate.

Edited by zedor, 15 January 2008 - 06:33 AM.

It also happens on some size orders for a few stocks. AAPL, DRYS, FCX, and a couple more come to mind. If I really wont the trade, I cancel and LOWER the bid by the same amount the W#*&^ raised it. Some times works. mss

Yes, I've noticed this. My experience has been during after-hours trading.