All
Outcomes
Market
Price
AI Fair
Value
Value
Edge
86-87°F
YesNo
88-89°F
YesNo
94-95°F
YesNo
98°F or higher
YesNo
82-83°F
YesNo
84-85°F
YesNo
90-91°F
YesNo
80-81°F
YesNo
92-93°F
YesNo
79°F or below
YesNo
96-97°F
YesNo
AI Insights:
10 hours ago UpdatedFair Value Reasoning:
Based on the latest forecasts from AccuWeather, WeatherBug, and NWS, the high temperature in Dallas on March 22 is expected to range between 91°F and 96°F. NWS explicitly mentions 'record-breaking warmth,' supporting the mid-90s as the most probable outcome. The market significantly overprices the '98°F or higher' option (27c), as the probability of exceeding 98°F is far lower than implied, even with the heatwave. Fair value is concentrated in the 92-97°F range.
Sign up to view more information
Divergence
There is a dual divergence: 1. Sum Divergence: The market implied probability sums to 181%, far exceeding the mathematical reality of 100%. 2. Tail Risk Divergence: The market assigns a 27% probability to temperatures exceeding 98°F, while mainstream meteorological models (WeatherBug, AccuWeather) forecast a peak of only 96°F, indicating the market is significantly overestimating the likelihood of extreme heat.