Should You Option Your Script?

Should You Option Your Script? – Introduction

Since most screenplays get optioned rather than sold outright, writers need to know how options work. In general, options won’t make you rich… or even pay your bills. 

What Is a Screenplay Option?

Writers are basically renting their material out for a fixed period of time, usually from six months to two years. During this time, the option holder–usually a producer–will try to raise the funds to produce the script. Option prices vary from no money up to a high of $25,000. And during the option period, writers cannot show or market their material to anyone else.

Example of How an Option Deal Works

To illustrate how options work, we’ll use this example: an option price of $5,000 on the front end against $50,000 on the back end, for a period of one year.
That means the writer is paid $5,000 up front at the time the option begins.

What Happens When the Option Period Ends?

After one year, several possible situations arise:

1. The Optioner Passes on the Script

The writer keeps the $5,000 and all rights revert back to the writer.

2. The Optioner Renews the Option

The writer receives another $5,000 (or agreed amount).

3. The Option Converts to a Sale (Best Outcome)

The writer gets the remaining $45,000 — total $50,000.

Why Options Usually Don’t Make Writers Rich

Most scripts that get optioned don’t get made. So all you might ever see is the option money. And sometimes that’s only a few hundred dollars.

What About Free Options?

Well, it depends. Do you know the person and/or company? Do they have a track record? Have you worked with them before? In that case, yes, you might want to consider it. 

If you don’t know the person and/or company, you shouldn’t.
Because if a company is seriously interested:

• they should pay $5,000–$10,000
  
• if they can only pay $500, evaluate their credibility
  

A small payment may feel good when you’re broke, but remember that you’re also taking your script out of the marketplace for up to two years.

Non-Exclusive Options / Shopping Agreements 

A non-exclusive option lets producers shop the script, but you keep all your rights.
You simply notify them of any submissions you make, so you don’t work against each other.

In case of doubt, consult an entertainment attorney. (But be aware: starting price is usually $350/hour.) 

FAQS

1. What is a fair price for a screenplay option?

A fair price for a screenplay option is usually a few thousand dollars, often around $5,000 to $10,000. This amount shows the producer is serious and has the resources to move the project forward. However, many producers offer very little or even nothing, which is not good for writers. So it is better to ask for some payment, even if it is small, to ensure the producer is truly invested.

2. How long should a script option agreement usually last?

A normal script option lasts six months to one year. This is enough time for a producer to read the script again, share it with partners, and try to raise money. Sometimes a producer asks for more time. In that case, the writer can agree, but the producer should pay for the extension. This keeps the deal fair. A long option, like two years with no money, is usually not good for writers. It ties up the script too long without results. So a short option with clear renewal terms works best.

3. What rights does a writer lose during an option period?

During the option period, the writer cannot show the script to anyone else. They also cannot sell it to another producer. In simple words, the script is “frozen.” All rights stay with the producer who holds the option. Because of this, the writer must wait until the option ends before marketing the script again. This is why option terms matter. If the option is too long or too cheap, the writer may lose time and opportunity.

4. Can a writer negotiate the terms of a script option?

The writer can negotiate the price. They can talk about the length of the option and the renewal fee. They can also discuss rights, credits, and deadlines. If something feels unfair, the writer can ask for changes. And if the deal still feels weak, they can walk away. This protects both the script and the writer’s career.

5. What happens if a producer options a script but doesn’t do anything with it?

If the producer does nothing, the option simply expires. When that happens, the writer keeps any money paid. Then all rights return to the writer. At that point, the writer is free to show or sell the script again. This is why some writers prefer short options, as it lets them move on quickly if nothing happens.