Doing it in the database is a very bad approach. Do you fully understand the JIRA data structure well enough? There's at least three tables you need to understand and that's just for global lists, there's more if you are using field contexts.
I'd also recommend that before you attempt this, you take a long hard look at the option list. 1,000 options is a silly amount to offer the users and probably isn't really usable. You really need to look at what you're trying to do and probably change the approach.
If you do decide to do it, then:
The best way to do this is with a script with the script-runner add-on. You can do a simple spreadsheet that can generate lines of script from a column with your values in it, paste it in and run it once. Or, even better, use the built in Bulk import values script.
Another approach would be to create an empty project, and use CSV import to pull 1,000 issues into it, each with a dummy summary and a different option set, and tell the import to create new options. Then delete the empty project (it won't remove the options, just the dummy issues you've created)
If you still want to do it with SQL, then you'll need a full understanding of customfield, customfieldoption, the counter table and the field's eventual context. Also, you will need to plan for a full backup and JIRA being offline while the SQL runs, and a recommended full re-index after restarting it.
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