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In this video tutorial on the Bookends YouTube channel, the host discusses option clauses in contracts. An option clause typically grants a publisher the right of first refusal for an author's next work, allowing them to review the manuscript before it is offered to other publishers. The speaker emphasizes the importance of limiting the scope of this clause, as it can sometimes extend beyond just the next book to include all subsequent works. This could restrict the author's opportunities, making it crucial to negotiate the terms effectively in order to protect their interests in future publishing endeavors.