Do options have a price floor? What is the lowest price an option can go? I have never seen an option that is showing some degree of volume go to zero. It seems that .05 is the lowest a contract will ever be. If this is truly the case, which I'm not sure of, could one find an option that is trading for .05 with a few weeks to go before expiration, buy it and sit on it. If it goes up to .10, you would have just doubled your money and if it stays flat, you would just buy it back a few weeks later before it expires. I realize that there are a few parameters that are worth mentioning in such a situation:First of all, the option would have to be out of the money....probably way out of the money to be trading so low with a few weeks to go. Secondly, it would have to be a very liquid option to provide a satisfactory level of probability that the contract could be bought and sold at this level. Granted, this would not be a risk free proposition; even if you are able to buy the contract at .05, that does not necessarily mean that you will be able to sell it again when the time comes. But is the theory behind this idea sound?