Reddit reviews Options, Futures, and Other Derivatives (10th Edition)

Two excellent titles on the subject are Option Volatility and Pricing: Advanced Trading Strategies and Techniques, 2nd Edition by Natenberg and Options, Futures, and Other Derivatives (10th Edition) by Hull.

The former is lighter, more entertaining read that is easier on math and touches on applied trading. The latter is a more thorough, academic title.

A number of other helpful resources are available. The Ally Invest Options Playbook provides a handy reference for various option strategies. The Interactive Brokers Probability Lab (free version linked at the bottom of the page) provides a modeling tool to visually explore option strategies by modifying expectations of volatility and price. CBOE offers a complete course on the subject. Finally, Tastytrade offers a long running set of shows, tutorials and discussions covering many aspects of options and option trading.

Risk parity with leverage makes a lot of sense- that's exactly what I do with my portfolio.

IB's margin rates are quite cheap, but that's mostly just because other retail brokers are stupid expensive. Have you considered using futures? That effectively gives you leverage at a very competitive rate (way cheaper than even IB margin). Note that taxation is different with futures ("Section 1256").

Consider that leverage can be very dangerous:

• As leverage increases, your expected value tends to infinity but your probability of ruin tends to 1.
  
• Even moderate amounts of leverage on a well-balanced risk parity portfolio can generate sickening drawdowns, or completely blow you out if you aren't rebalancing the leverage ratio on the way down.
  
• As leverage increases, you pay a penalty from the extra volatility. This cost to your expected growth rate increases with the square of leverage.
  
  All of these arguments suggest keeping your use of leverage very light. The penalty in future wealth of using too little leverage is far less than for using too much leverage.
  
  What you're suggesting could be viable, but you're straying far off the well-trodden path. You need to do tons of research on topics like how futures work, applying the Kelly criterion to investing, fat tails, negative skew, All-Weather and its All-Seasons cousin, balanced portfolios, life-cycle investing, etc. etc. before even thinking about this.

Why not just get the standard options book:

https://www.amazon.com/Options-Futures-Other-Derivatives-10th/dp/013447208X

this what you mean?

https://www.amazon.com/Options-Futures-Other-Derivatives-10th/dp/013447208X/ref=sr_1_2?s=books&ie=UTF8&qid=1525120533&sr=1-2

Unlikely you'll find such a thing. Read Hull https://www.amazon.com/gp/aw/d/013447208X/ref=mp_s_a_1_1?ie=UTF8&qid=1501755851&sr=8-1&pi=AC_SX236_SY340_FMwebp_QL65&keywords=Hull+derivatives

Any earlier addition will suffice to get the most best understanding of all general classes of assets.

The problem is say you have base asset classes: equities, bonds, currencies and commodities.

The you have options on those.

Then you have futures contracts on those.

The you have options on the futures contracts.

Bonds can be broken to sovereign and corporate.

Corporate can be high yield or investiment grade.

Sovereign can be local, state, national

And it goes on and on and on.

Tobias Carlisle written a bunch of books and runs a fund (ZIG) based on his multiple. He might be a good place to start on long/short value investing. You weren't exactly clear on what sort of long/short you were looking for.

I leaned a lot years ago from an early edition of: https://www.amazon.com/Options-Futures-Other-Derivatives-10th/dp/013447208X
That book is very mathy but if you want to learn how to think about splitting investments into pieces of risk this is the place.

A similar book https://www.amazon.com/gp/product/0471786322 gets excellent reviews

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