Gastar Exploration $GST - Form 4 Reveals Ares Management's Ownership of a Convertible Note in GST

Ares Management was announced as a 10% shareholder in Gastar Exploration through a recent Form 4 filing. Ares has a convertible note on $GST shares, as well. Shares of $GST are down over 90% YTD and I can only logically see this as symptomatic of an attempt at accumulating $GST shares for a relatively low cost.

A plummeting share price can be used to "shakeout" weak shareholders and allow accumulation if the share price is expected to rebound. This is corroborated by the large open interest and trade volume of call options in $GST recently. In theory, this option activity could be a result of coherence to wash trading regulations- where minority shareholders are, in fact, trying to accumulate $GST shares as described above. Irrespective of the veracity of that hypothetical, however, I am betting on an increase in $GST share price and I am currently long $GST 15Mar 1calls.

https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001431372&owner=include&count=40

https://www.sec.gov/Archives/edgar/data/1176948/000110465917029663/xslF345X01/a4.xml