Does the specialists and market makers hedge their stock inventories?

i find hard to believe they wouldn't buy a put if they saw their stock sinking day after day. then they could rebalance at the end of each trading day and eat up the intraday losses/gains when it streches beyond the hedge, why they would not do this?
 
Read Cottle's book. There is a free version floating around on the net. You will get an idea of how MMs operate.
 
Quote from Tums:

Read Cottle's book. There is a free version floating around on the net. You will get an idea of how MMs operate.
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Can you post the link or at least offer the full name of the author and the name of the book?
 
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