I understand the market maker is the one quite frequently on the other side of my buy or sell option order (to make sure their is liquidity in the market, and offering the bid / ask spread as "compensation" for what they do). Given that, do these market makers then seek to become "delta-neutral" by owning the underlying security?
As such, does heavy options demand affect the underlying stock / security? Or perhaps heavy options demand can "take care of itself", because now its easier to pair up buyers and sellers without the market maker holding the underlying (assuming they even do).
Please elaborate on any dynamics / considerations you know of here. I'm trying to understand how/if heavy options demand can affect a stock price, say around earnings season or any time options demand becomes heavy.