I did not make my earlier comment clear.
I never short the actual stock - my broker has the legal authority to cover (buy in) a shorted stock at any time, without my permission. I am not comfortable with that.
I only go short by buying put options.
Your strategy to insure a GameStop short position with a $10 option premium does not match the reality of current option prices.
The current premium on at-the-money March $108 puts and calls is almost $45!
That was only meant to be an example of the general idea, not an actual trade.
The worst time to straight up buy puts or calls when is when the big move is already in progress or occurred. The volatility component of the premium explodes. Like calling to buy homeowners insurance as a cat 5 hurricane is blowing on your front door.