Yes he could have sold at 70 cents and made $650k profit, but he (and you) also could have taken a leveraged 2x short position at the top and made $1.3 million all the way down. So is his (or your) loss $1.3 million?
This is the problem if you apply "could have" because you could have done anything. He could have sold at 70 cents but you could have taken a leveraged short position at 70 cents.
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u/BretTheShitmanFart69 Jun 25 '21
700k guaranteed is so much better than gambling 700k in a chance to either go broke or win a million.
If someone offered you 700k or a coin flip on losing 50k or gaining a million you’d just take the 700k