Ares Management Surges 3.46% on Strategic Capital Move: What's Fueling This Rally?

Summary
• Ares Management (ARES) surges 3.46% to $171.42, hitting an intraday high of $171.91
• Steward Partners secures $475M in strategic capital from Ares Credit funds
• Ares acquires 314-acre data center site in Virginia and two hyperscale facilities
• Sector: Diversified Financials up 0.12%, with Blackstone (BX) leading at +2.90%

Ares Management’s stock is surging on a landmark capital infusion into Steward Partners and strategic real estate acquisitions. The $475M deal with Steward Partners—combining expanded lending and a minority equity stake—signals growing institutional confidence in the RIA sector. Meanwhile, Ares’ data center expansion in Northern Virginia underscores its bet on digital infrastructure. With technical indicators showing a short-term bearish trend but long-term bullish momentum, traders are weighing entry points amid a volatile options landscape.

Strategic Capital Injection Ignites Ares' Rally
Ares Management’s 3.46% intraday surge is directly tied to its $475 million strategic capital partnership with Steward Partners, a leading RIA firm. The transaction—a blend of expanded lending and a non-controlling minority equity stake—positions Ares to capitalize on Steward’s growth in advisor recruitment, M&A, and technology. This move aligns with Ares’ broader strategy to deploy capital in high-growth, private markets, particularly in wealth management and digital infrastructure. The news arrives amid a broader trend of institutional investors seeking long-term value in RIA platforms, with Steward’s employee-owned model and $50B AUM making it an attractive partner. The deal’s emphasis on preserving advisor control while accelerating growth has resonated with investors, driving immediate demand for Ares shares.

Diversified Financials Lag as Ares Defies Sector Weakness
While the Diversified Financials sector edged up 0.12%, Ares’ 3.46% gain outperformed peers like Blackstone (BX, +2.90%) and underperformed insurance and banking subsectors. The sector’s muted performance reflects broader market caution ahead of year-end, but Ares’ rally is driven by asset-specific catalysts rather than macro trends. Steward Partners’ strategic partnership and Ares’ data center acquisitions are firm-specific events, decoupling the stock from sector-wide dynamics. This divergence highlights Ares’ unique positioning in private capital markets, where growth opportunities in RIA platforms and digital infrastructure are outpacing traditional financial services.

Options and ETFs for Navigating Ares’ Volatile Momentum
• 200-day MA: 163.27 (below current price) • RSI: 58.66 (neutral) • MACD: 4.54 (bullish) • Bollinger Bands: 146.16–182.68 • 30D Support: 153.65–154.37 • 200D Support: 152.41–153.91

Ares’ technicals suggest a short-term consolidation phase after a sharp rally. The stock is trading near the upper Bollinger Band (182.68) but remains above key moving averages, indicating resilience. The RSI at 58.66 suggests no immediate overbought conditions, while the MACD histogram (-0.33) hints at waning bullish momentum. Traders should monitor the 170–175 range as a critical battleground for near-term direction. The options chain reveals high-liquidity contracts with attractive risk-reward profiles for both bullish and bearish plays.

Top Option 1: ARES20260116C170
• Code: ARES20260116C170 • Type: Call • Strike: $170 • Expiry: 2026-01-16 • IV: 29.15% • Leverage: 28.53% • Delta: 0.556 • Theta: -0.1468 • Gamma: 0.0296 • Turnover: 7,820
• IV (29.15%): Moderate volatility • Leverage (28.53%): High gearing • Delta (0.556): Sensitive to price moves • Theta (-0.1468): Aggressive time decay • Gamma (0.0296): Strong sensitivity to price changes
• This call option offers a balance of leverage and liquidity, ideal for capitalizing on a potential breakout above $170. With a 5% upside scenario (targeting $180), the payoff would be $10 per contract, offering a 35% return on the premium paid. The high gamma ensures responsiveness to price swings, while the moderate IV suggests reasonable cost.

Top Option 2: ARES20260116C175
• Code: ARES20260116C175 • Type: Call • Strike: $175 • Expiry: 2026-01-16 • IV: 27.75% • Leverage: 48.91% • Delta: 0.403 • Theta: -0.1288 • Gamma: 0.0305 • Turnover: 9,972
• IV (27.75%): Slightly lower volatility • Leverage (48.91%): High gearing • Delta (0.403): Moderate sensitivity • Theta (-0.1288): Strong time decay • Gamma (0.0305): High sensitivity to price changes
• This contract provides higher leverage (48.91%) and strong gamma (0.0305), making it ideal for aggressive bulls. A 5% upside to $180 would yield a $5 payoff per contract, translating to a 100% return on the premium. The high turnover ensures liquidity, while the moderate IV keeps costs in check. Both options are well-suited for a bullish bias, with ARES20260116C175 offering higher reward potential for those willing to accept increased risk.

Action Alert: Aggressive bulls should consider ARES20260116C175 into a breakout above $175, while conservative traders may target ARES20260116C170 for a controlled entry. Watch for a retest of the $165 support level as a key inflection point.

Backtest Ares Management Stock Performance
The performance of ARES after a 3% intraday increase from 2022 to now has shown positive returns, with the 3-day win rate at 57.69%, the 10-day win rate at 60.38%, and the 30-day win rate at 68.27%. The maximum return during the backtest period was 6.37%, with a maximum return day at 59.

Ares at a Pivotal Juncture: Strategic Moves and Technical Cues
Ares Management’s rally is underpinned by a strategic capital infusion into Steward Partners and a digital infrastructure expansion, both of which signal long-term growth potential. However, technical indicators suggest a short-term consolidation phase, with the 170–175 range acting as a critical battleground. Traders should monitor the 200-day MA (163.27) as a key support level and the upper Bollinger Band (182.68) as a resistance target. The options chain offers high-leverage opportunities for those betting on a continuation of the rally, particularly with ARES20260116C175. Meanwhile, the sector leader Blackstone (BX) is up 2.90%, reinforcing the case for a broader market rotation into capital deployment plays. Act now: Position for a breakout above $175 or a pullback to $165, and consider the ARES20260116C175 for high-reward potential.