Ares Management Plummets 3.37%: Credit Secondaries Bonanza Sparks Volatility Amid Sector Turbulence

Summary
• Ares Management (ARES) plunges 3.37% to $168.42, marking its worst intraday drop since late 2024.
• The firm announced a $7.1 billion credit secondaries fund, doubling its initial $2 billion target.
• Technicals show a short-term bullish trend but long-term consolidation near 52-week range.
• Sector leader Blackstone (BX) also declines 1.35%, signaling broader asset management sector jitters.

Today’s sharp selloff in Ares Management defies the bullish technical backdrop, driven by a mix of market skepticism and sector-wide liquidity concerns. Despite a landmark fundraise, investors are recalibrating risk amid a volatile start to 2026.

Credit Secondaries Triumph Triggers Profit-Taking
Ares Management’s 3.37% intraday decline follows its announcement of a $7.1 billion credit secondaries fund, the largest dedicated institutional credit secondaries fund globally. While the milestone underscores the firm’s leadership in the $210 billion secondaries market, the sharp drop suggests profit-taking after a recent rally. The market appears to be pricing in short-term execution risks, including liquidity management in a $595 billion AUM portfolio. Additionally, the broader asset management sector faces pressure as investors reassess valuations in a high-interest-rate environment.

Asset Management Sector Under Pressure as Blackstone Slides
The asset management sector is broadly under pressure, with Blackstone (BX) down 1.35% despite its own infrastructure secondaries fund closing at $5.5 billion. The sector’s 103.95 P/E ratio remains elevated, raising concerns about earnings sustainability in a tightening credit environment. Ares’ sharp drop mirrors sector-wide caution, as investors weigh the long-term viability of secondaries strategies against rising capital costs and regulatory scrutiny.

Options Playbook: Capitalizing on Volatility with ARES20260220P170 and ARES20260320P165
• 200-day average: 164.85 (below current price)
• RSI: 60.54 (neutral)
• MACD: 3.16 (bullish divergence)
• Bollinger Bands: 161.83–178.45 (price near lower band)

ARES is trading near its 200-day moving average and within a long-term consolidation pattern. The 60.54 RSI suggests balanced momentum, while the MACD histogram’s positive divergence hints at potential short-term strength. However, the stock’s 3.37% drop today highlights volatility risks, making options a strategic tool for directional bets.

Top Option 1: ARES20260220P170
• Contract Code: ARES20260220P170
• Type: Put
• Strike Price: $170
• Expiration: 2026-02-20
• IV: 32.88% (moderate)
• Leverage Ratio: 21.92% (high)
• Delta: -0.497 (moderate sensitivity)
• Theta: -0.048 (modest time decay)
• Gamma: 0.0219 (strong price sensitivity)
• Turnover: 4,470 (high liquidity)

This put option offers high leverage and strong gamma, ideal for capitalizing on a potential 5% downside move. Projected payoff: max(0, 160.00 - 170) = $0 (break-even at $170).

Top Option 2: ARES20260320P165
• Contract Code: ARES20260320P165
• Type: Put
• Strike Price: $165
• Expiration: 2026-03-20
• IV: 35.99% (moderate)
• Leverage Ratio: 20.58% (high)
• Delta: -0.4018 (moderate sensitivity)
• Theta: -0.0528 (modest time decay)
• Gamma: 0.0148 (reasonable price sensitivity)
• Turnover: 18,400 (exceptional liquidity)

This put provides a longer-dated, high-liquidity play on a deeper correction. Projected payoff: max(0, 160.00 - 165) = $5.00 per contract. Aggressive bulls may consider ARES20260220C170 into a bounce above $174.49.

Backtest Ares Management Stock Performance
The performance of ARES (iShares Core S&P 500 ETF) after a -3% intraday plunge from 2022 to now has shown positive short-to-medium-term gains. The backtest data indicates that the 3-Day win rate is 57.29%, the 10-Day win rate is 62.33%, and the 30-Day win rate is 73.21%. Additionally, the 3-Day return is 0.60%, the 10-Day return is 1.58%, and the 30-Day return is 4.23%. The maximum return during the backtest period was 8.11%, which occurred on day 59.

Act Now: Position for Ares’ Secondaries Surge or Sector Downturn
Ares Management’s sharp decline today reflects a mix of profit-taking and sector-wide caution, but the stock remains well-positioned for long-term growth in the $210 billion secondaries market. Traders should monitor the 168.42 support level and 174.49 intraday high for potential reversals. With Blackstone (BX) down 1.35%, sector-wide liquidity concerns persist, but Ares’ $7.1 billion fundraise signals enduring demand for credit secondaries. Watch for a break below $165 or a rebound above $174.49 to dictate next steps.