PMWeather|$4,627 Vol|
time2 days 13 hrs

Highest temperature in Dallas on March 21? - AI Odds Analysis

All Outcomes
Market Price
AI Fair Value
Value Edge
94-95°F
YesNo
92-93°F
YesNo
98°F or higher
YesNo
90-91°F
YesNo
96-97°F
YesNo
86-87°F
YesNo
88-89°F
YesNo
84-85°F
YesNo
82-83°F
YesNo
80-81°F
YesNo
79°F or below
YesNo
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AI Insights:

10 hours ago Updated
Fair Value Reasoning:
Based on the latest meteorological models (NOAA/NWS, AccuWeather, NBC5, WFAA) as of March 18, 2026, the forecast for Dallas on March 21 has tightened significantly to the 92°F to 95°F range. While the NWS official point forecast is 93°F, the urban heat island effect at Love Field (KDAL) often adds 1-2°F, and local outlets (e.g., WFAA) are forecasting 95°F. Thus, the 94-95°F bucket represents the highest probability outcome, followed closely by 92-93°F. The market is currently severely overpricing the probability of extreme heat (98°F+) and cooler outcomes (<90°F), which should have fair values near zero.

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Movers
March 17, 2026 - March 18, 2026: The price of 88-89°F crashed from 22.5c to 7.5c. This was driven by a consensus among major meteorological models (NWS, Google Weather) confirming temperatures above 90°F for Saturday, effectively eliminating the 'cooler' scenarios. Prior to March 17, 2026, prices were stagnant due to a lack of liquidity.
Divergence
There is a significant 'tail risk' divergence. While the market correctly identifies 94-95°F as the favorite (aligning with mainstream media forecasts like NBC5/WFAA at 94-95°F), it simultaneously assigns a combined probability of ~36% to outcomes above 96°F (18c for 96-97°F and 18.5c for 98°F+). This contradicts meteorological data, as no major forecast supports temperatures exceeding 96°F, suggesting the market is inefficiently hedging against extreme outliers.

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