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It’s equally possible that a studio or a production company will want to “option” your spec script or perhaps enter into a “step-deal” based on your pitch.
This means that the potential buyer isn’t ready to commit to the entire purchase price or is uncertain whether or not they can get the project “greenlit” into pre-production but they feel it has enough merit to warrant spending some time and money developing the project. (It’s also possible they have a competing project and simply want your similar script off the market.)
An option is a right, given in exchange for something of value, to subsequently purchase a literary property at an agreed upon price and terms, within a specified time.
Option deals are similar to “lease options to buy” in real estate. An amount of money is given as a sort of “down payment” to secure the collateral (the screenplay). The option money is the screenwriter’s to keep.
The Writers Guild Agreement regulates options as well.
For a theatrical motion picture, the optioning party must pay not less than 10% of the applicable minimum due upon the sale of such material for each option period of up to 18 months.
For television, the buying entity must pay not less than 5% of the applicable minimum due upon the sale for the first option period of up to 180 days and 10% of minimum for each period of 180 days thereafter.
Thus, it is against the WGA minimums to option material for $1.00 (which can often be the case with unrepresented writers). All of these option payments may be ultimately credited against the purchase price (unless this is prohibited by the writer's individual contract).
Depending on the terms of the option, some purchase prices are agreed to in advance while others may be left up to the WGA standards based on the budget (everything is up for negotiation). Writers can always negotiate for compensation above the minimum rates.
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