You can't actually put an elf inside a balloon, but you can create the illusion that an elf is inside a balloon by using special effects and trickery. One way to do this is to use a green screen and green cloth to make it look like the elf is in a balloon. You can also use lighting and props to create the illusion of a balloon around the elf. Finally, you can use computer-generated imagery to add a balloon around the elf in post-production. With the right combination of effects, it can be difficult to tell that the elf is not actually inside the balloon.