Can a Large Options Trade on a Public Exchange Be Front-Run?

Yes, a large options trade can be front-run. If a large order for an option contract is submitted, market participants can observe this on the public order book.

Knowing the option's delta, they can quickly place trades in the underlying asset or other related options to profit from the anticipated price impact that the large options trade or its subsequent hedging activity will cause. This is especially true if the options trade signals a significant directional view.