If it is more than 15 DTE, I usually don’t pay any attention to the 50% rule. The only exception being if there is material news on the stock which took it down. eg. A confirmed report about TSLA cars catching fires due to a defective battery. But if the stock fell on some “tweet” by Elon Musk, I would disregard it.
Do we close the spread when we lose 50% regardless of when we initiated it on… or do we wait until 15 days before expiration?
If it is more than 15 DTE, I usually don’t pay any attention to the 50% rule. The only exception being if there is material news on the stock which took it down. eg. A confirmed report about TSLA cars catching fires due to a defective battery. But if the stock fell on some “tweet” by Elon Musk, I would disregard it.