 Here we are going to look at how we adjust single options. We bought a call, we can sell a call, we can buy a put and sell a put. So basically these four options are also called as long call, short call, long put and the short put. First of all we need to ask ourselves what is an adjustment and why do we need to adjust. You have put a long call position which means you are bullish, you expect the stock to go up. You need to give it some time so that the trade can play out in your favor because in the short term stocks might go against you and then it will at some point turn around if your outlook for that stock or index still remains the same. You expect the stock to go up but in the short run it might take a turn in the other direction but you still expect it to come up. That's the general outlook for a long call. In a short call what you are doing is you are going out of the money, you are putting probability on your side and then you are selling a call option that is much higher than where the current stock price is trading at. So the outlook with a short call is that even if you are wrong you want to give yourself enough room so that the stock price doesn't hit your short call strike price. Now I must point out at this point that you are going to see in the next module we are getting into spreads and so once you do the module on the spreads you will know that you should never short a call or short a put without putting it as a spread because both your short call and your short put has unlimited risk profiles and that's not good and many brokers won't even allow you to do that sell naked options, those are called selling naked options.