This thing has gone from a low of $4.55 to it's most recent high of $12.04 in about 6 months. In other words, in the last 6 months this thing has rallied 164%.

If we assume that he even has a real trading account, that it is funded with more than his weekly allowance, and that he has been granted margin, all 3 of which are very bold assumptions, then we can safely conclude that this guy is either (1) deeply, deeply, underwater and about to be forced to liquidate, (2) has already been forced sold, or (3) has hedged his position by buying calls on his shorts (this I highly doubt though).

However, the more probable scenario is that this guy doesn't even have an account and is paper trading at UpDown.com or one of the other online paper trade sites. And he likes talking @#$% on the internet but really has no skin in the game. He just likes to use the word bag-holder a lot.

Disclaimer, I'm long 10 March 2010 $12.5 calls bought them today, 10/08/2009, for $125 per contrast. I'll sell them when their worth $300.