I've often read to cut your options trades when you've lost some predefined risk tolerance (e.g. 50% of debit/credit). But if you use fundamentals and technicals as the basis to put on the trade, how do you manage if the thesis fails?
I use Schwab and set my options trades to close out (market order) based on the price of the underlying.
Some say option Greeks can cause you to lose more, but a bullish trade selling a bear put spread has lots of positive delta when putting on so going against you from the get puts you in the hole. Why wait until you're out 50%?
Curious what you do.