Invesco Ltd. (NYSE: IVZ) is one of the few financial stocks to perform poorly this year. That’s because it’s not a bank but a mutual fund manager, so revenue is a function of assets under management and not interest rate spread. With so much money flowing into hot momentum stocks this year, Invesco has seen the size of its asset base diminish.

However, I believe the type of market-neutral, long/short strategies that Invesco employs will enjoy renewed interest as the mid-term elections start looming large. Bob Woodward’s expose on White House dysfunction released this week will only heighten anxiety that the Republican Party may lose too many seats in November to implement the remainder of its pro-growth economic agenda.

Even if that does not turn out to be the case, just the fear of it may temporarily send money scurrying to the sidelines until the dust settles. To help attract more of those dollars, Invesco recently announced a fee reduction for three of its “smart beta” funds. It appears the stock market also overlooked a 2.5% bump in assets under management during the month of July.

Invesco earns the highest possible score of 10 from my IDEAL Stock Rating System due to its high forward dividend yield (4.9%), improving cash flow, and low forward P/E ratio of less than nine times earnings. In addition, its P/B (price to book) ratio of 1.15 is below Warren Buffett’s threshold for attractively priced stocks.

Regardless of how many contracts you sell, it’s absolutely critical that you follow the instructions below, particularly when it comes to setting the limit order.

How to Make the Trade:

• Trade: Sell to open the January 18, 2019, $23 put option on Invesco Ltd. (NYSE: IVZ).
• Symbol: IVZ190118P00023000
• Limit Order Price: a credit of $1.00 or more.

Tell your broker: “I want to sell a put on Invesco Ltd. stock. Specifically, I want to ‘sell to open’ one $23 Put that expires on January 18 for a credit of $1.00 per share or more.”

Note: Sell one put for every 100 shares of Invesco Ltd. you would be pleased to buy at $23 per share. Investors should set aside $2,300 per contract sold to buy the stock in case the option expires in the money.

Further Instructions Regarding the Trade:

• • If the option price changes, you can adjust our recommended limit based on the midpoint of the bid/ask spread, which you should be able to see when entering the trade. Just make sure the potential credit is at least equal to the Limit Order Price specified above.
  • Place your limit order on a “good ’til canceled” (GTC) basis and be patient.