Which dialogue is properly formatted for a play?

OLIVIA: Like under your bed.
RYAN: Or in a closet.
STEPHEN: Oh, Mitch aren't you embarrassed that you hate storms when Storm is your own last
name?
Like under your bed Or in a closet.
"Oh, Mitch, aren't you embarrassed that you hate storms when Storm is your own last name?"
OLIVIA: "Like under your bed."
RYAN: "Or in a closet."
STEPHEN: "Oh, Mitch aren't you embarrassed that you hate storms when Storm is your own last
name?"
Olivia said, "Like under your bed."
"Or in a closet "Ryan offered.
Stephen added, "Oh Mitch, aren't you embarrassed that you hate storms when Storm is your own
last name?"

1 answer

The dialogue that is properly formatted for a play is the first option:

OLIVIA: Like under your bed.
RYAN: Or in a closet.
STEPHEN: Oh, Mitch, aren't you embarrassed that you hate storms when Storm is your own last name?

In a play script, character names are typically written in all capital letters, followed by a colon, and then the dialogue begins with a capital letter. This format clearly differentiates the characters from their spoken lines.