Let's say I bought a particular call option and own the majority of it.
On the very last second (before the expiry date, seconds before the market closes), if I bought every single offer in the underlying market, the price would sharply spike upwards and since the call option expires immediately afterwards, I would generate massive amounts of profit from that.
On the next day the market opens, I would have to sell the shares I bought for a loss, but this is negligible compared to the profits I made from my call options (this can also be prevented, as I will explain later on).
Now, there is a risk that the stock price would go way down below the strike price, but this could be simply solved by shorting futures to hedge my position. So in the case it goes, down I simply do not exercise my option and profit from the future, losing a tiny amount of premium.
Additionally, the volume required to buy every single ask offer in a few seconds is negligible compared to the profit you will have at the expiry date from the call option.
Previously, I said I would lose money when I sell my shares back, but this can also be prevented. When I was buying all the shares in the equities market, I can also short futures in order to hedge my position. Of course, this has to be precisely timed and calculated such that the average cost of buying equities equal the average cost of shorting futures, but with some effort, this can be done. Another idea I have is to arbitrage the future market by going long on future since you have insider-like information by knowing that the price of the underlying asset will go up.
In my opinion, this seem like a really questionable way to make massive amounts of money. So my question is, is this legal, and if so which law prohibits this and from what state/country?