I always hear "market makers don't want to pay out xxx", earning's comes, reports well but with the total amount of calls purchased the prices stays stagnate, usually until 2 weeks later or two Fridays have passed, giving no payout to those who bought calls beforehand. Then prices takes off in response to the really positive earning's.
Is this actually something that's done? I read this in comments often, is there any truth to it? That somehow market makers are suppressing prices to avoid paying out options, then when options expiry date comes afterwards the price action can begin after so many who would've been right are not actually paid out. Does this manipulation happen and if-so how?
