basically, I never hear the end of info about how MM's manipulate stock prices to make sold options expire worthless. How does this ACTUALLY work? I am also curious how market makers provide liquidity to options as well. If I wanted to buy 1000 OTM calls on a stock that I knew was going to imminently get bought out, how would the MM protect against a collosal loss? Do they offset all sales with stock purchases or by holding spreads? The whole thing seems bewildering, and I'm sure an options MM (unless this is all automatically electronically done) could explain how this whole thing really works. Furthermore, price manipulation is expensive I would assume. Anyone know the story? Do MM's recklessly sell whatever the market buys from them, then start covering their asses before expiration by buying/selling stock, then unload these temporary positions the following week?