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AI Insights:
03.18 16:31 UpdatedFair Value Reasoning:
AZ-09 remains one of Arizona's most solid Republican strongholds (Cook PVI R+16) with deep-red demographics. Incumbent Paul Gosar, while controversial, is deeply entrenched, and historical midterm dynamics rarely threaten such safe seats. Barring extremely low-probability tail risks like health issues or sudden withdrawal, the Republican win probability is fundamentally near 100%. The current price of 87 cents largely reflects the liquidity premium and time cost of capital for the 7+ month lock-up, rather than actual election risk.
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Divergence
There is a significant 'pricing-fundamental' divergence. Mainstream political forecasting (e.g., Cook Political Report) rates AZ-09 as 'Safe Republican,' implying a >99% win probability. However, the market prices it at only 87%. This 12-13% discount stems not from disagreement over the winner, but as a liquidity premium for the 200+ day capital lock-up.