Any reason to trade Deep ITM NIFTY Options?

From NSE OI Data of NIFTY JAN15 Options, I see a considerable OI buildup at 7000CE or even at 6700CE. On the PUT side 9000PE/9500PE has good OI where underlying is at 8200 range. What can be the reason for trading in these costly strike points?

As an option buyer, if you trade naked positions, instead of trading Deep ITM options you could just trade futures. Deep ITM like 9000+ Puts or 6000+ calls, don’t give you any leverage like what we get buying OTM options, and they can also hurt you with impact costs because of lower liquidity while executing orders.

An option writer gets to pocket a huge premium, so there are definitely multiple strategies around this.

But the thing with Options is that there are people running fancy strategies, and you never know where they are creating liquidity because of this.

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