Can options volume affect the underlying asset price indirectly? I know that options buying/selling does not directly affect the price of the underlying asset (rather, the asset price contributes most to the option price). I do know of technical studies and alert systems that factor in options volume, and put/call ratios, but outside of some speculation, is there a known school of thought which revalues an asset based on the desirability of its options?
Nearly every options trader - and every options marketmaker - will hedge their derivatives exposure by trading the underlying.
So even if I buy a set of naked calls, my counterparty (e.g. whoever is writing me the options, usually a hedge fund or a bank) will have negative exposure to the stock and buy it to cancel out their risk.
Think of an option as something with a certain probability of turning into a stock and a certain probability of turning into nothingness. The delta is a rough estimate of "how much of a stock is it right now" - a 0.5 delta option behaves 50% like the underlying stock. If I buy a near-delta 1 option (e.g. extremely in the money, short expiry), then I've just bought the stock. In an efficient market that should flow through to affect the price of the stock itself.
It's theoretically possible for this not to be the case - my cousin writes me a call option on MSFT, we treat it as a side bet on the price of the stock, and we never think about it again until the decision/expiry date - but that doesn't happen in the real world.