You don’t want to exercise. That means, take ownership of the shares at the strike price. That requires far more capital that’s either not in an LI pick or would overweight an Lzi pick.
Some options will go worthless. That’s a given. It’s about gaining a statistical edge over time, which is what my option ebook and reports are about. Long-term edges.
The way you handle losses is that you risk a small percentage of your overall amount you have allocated to options. 1-5% max. 1-2% is more ideal.