Option

Understanding Option

Options exist because development takes time and money, and producers do not want to buy a script outright before they know they can set it up. An option gives them a window to attach talent, secure financing, and shop the project to studios. For writers, an option means someone believes in the project enough to pay for the right to develop it, but it is not a sale. Option fees vary widely: WGA minimums exist for guild members, but non-guild options can be as low as $1 (the infamous "dollar option" — legal but a red flag). The purchase price is negotiated when the option is signed, so the writer knows what they will receive if the option is exercised. If the producer cannot set up the project in time, the option lapses and the writer can shop the script elsewhere.

Example in a Screenplay

OPTION DEAL TERMS (typical independent):

Script: "Borderline"
Option fee: $10,000 for 12 months
Purchase price: $150,000 if exercised
Extension: Additional 12 months for $5,000
Reversion: If not exercised, all rights revert
to writer on expiration date.

(Writer gets paid now. Producer gets time to package.
If it stalls, writer walks with $10K and their script.)

Common Mistakes

Related Terms