Is there a rule of thumb on when to exit to use to close (sell) an option if the stock is not going in the right direction? For example, a call option contract is made on a stock which expires in a month, but the price dropped after a week to 25%. Should you wait for the option to expire or close it immediately to stop further loss?
Let's say you buy a stock and it soon drops 25%. Is it best to sell it to stop further losses, or will it go back up? Just like in your scenario, there is no magic strategy that is always correct, as the market is unpredictable.
However, with options, you also need to worry about time until expiration. So, since you still have approx 3/4 of the original time left, if you believe the stock could still rally, maybe you could hold out a bit longer. Or, you might think it will keep going lower or stay the same, in which case you probably want to get rid of it. But that is really just speculation and you'll never know for sure.
When buying options, you are most likely already at a disadvantage when it comes to probability of success. The further the underlying goes in the wrong direction, the further your probability of success decreases. Look at the odds, and make the call whether or not the current risk is worth the reward. Nobody else can tell you what is appropriate for your exact situation.