For every share of $F he has, he also has an offsetting deep ITM call option he's written. He doesn't have $1M risk on - or rather, he doesn't have linear risk on.
The payoff for a covered call looks like this (sorry for the paint): https://imgur.com/a/J6vcUty
P is the price where he bought the Ford share. S is the strike price. S << P since he's writting deep ITM calls. The combined payoff is just the sum of the stock payoff and the call payoff.
As you can see, he's fine, as long as F doesn't tank. If it does, he's on the hook for some money. So he didn't lever up a linear payoff in the stock price, he levered up the payoff I showed above.
Really, everything is fine, as long as Ford share price stays above the strikes he wrote. If it goes under, CTN goes bankrupt and RH can't get their money back.
But this is a lot more subtle than getting 2:1 or whatever linear leverage.
Also, I'm salty because I submitted the same story before this was posted, but it died in the "new" queue.