[metaphorm]

he can, which presents downside risk on those options equal to their purchase price.

however, the article seemed to describe a portfolio position of _actual_ borrowed stock, meaning he is trying to execute a classical short position trade on it, and not just hedge it with options.

his downside risk in that case is basically unbounded, though realistically only as much as the stocks might rise in price which is not unlimited.

but his ratio of short positions to long positions is 1.5:1 which means he could easily get blown out if he holds on for too long through even a relatively short lived rally. its a pretty substantial gamble no matter how you look at it.