economy
Use options to play a potential Invesco runup in wake of Janus Henderson deal
Asset managers are trading at a significant discount to the broad market.
TL;DR
- The asset management space is experiencing price discovery, with Janus Henderson being acquired at a modest valuation, indicating a discount compared to the broad market.
- Fee pressure and the popularity of ETFs are headwinds for asset managers, but the bidding war for Janus suggests some firms may be undervalued.
- Invesco, with significant AUM and a strong QQQ franchise, is trading at a deep discount and has a wide moat due to scale and diversification.
- An options trade (May 15, 2026 22/25/27 call spread risk reversal) can generate a net credit similar to Invesco's quarterly dividend, providing income and potential upside.
- This strategy allows investors to capture the dividend-equivalent credit upfront and profit from potential stock appreciation if Invesco's price rises.