Q. I like using all-caps to imply "virtual" camera shots, as below:
INT. CH-47 CHINOOK - CARGO BAY -- NIGHT
As one, the SWAT guys turn to look down at the
strapped to the floor of the hold...
SLAM CUT TO:
A ZIPPO LIGHTER
is carefully placed on a table-top. It bears the word “AIRBORNE” and an eagle-head Special Forces logo.
Then an unopened pack of LUCKY STRIKES is placed next to it, lined up with military precision.
PULL BACK TO REVEAL we are in
INT. WAREHOUSE - NEW YORK HARBOR -- NIGHT
CLAY waits alone, patient as a rock.
Or should the slugline come first?
This is how I usually do it. You want to use correct screenplay format, but you're writing a reading script, not a production script, so you have some leeway. If you put the slugline first (as you would for the benefit of the production crew), it puts the image of a warehouse in the reader's head before you want it to be there. Whereas if you only tell us about the Zippo, we get the virtual closeup of a Zippo lighter you wanted.
On a minor note: CUT TO:
has generally gone out of fashion, as has the use of (CONT'D)
when a character speaks twice in a row. I guess the feeling is they're clutter.
Some people particularly object to SLAM CUT:
on the grounds of "a cut is a cut." But I use SLAM CUT
where it seems appropriate. A cut is a cut, but in a "slam cut," there's probably a sting on the soundtrack.
In other words, use standard screenplay format most of the time. It's there to make a screenplay easier to read. But don't hesitate to break it in order to achieve a specific effect.