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