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AI Insights:
03.04 09:25 UpdatedFair Value Reasoning:
IN-01 is a traditional Democratic stronghold in Indiana (Cook PVI D+3). Incumbent Democrat Frank Mrvan has shown strong resilience by defending the seat in both 2022 (Biden midterm) and 2024 (Trump won the presidency). The 2026 election will be a midterm during Trump's second term, a scenario that historically heavily favors the opposition party (Democrats) due to the 'midterm penalty'. Mainstream forecasters rate this seat as 'Likely Democratic', implying a win probability of >90%. Although the market price has recovered to 76.5c, it remains undervalued relative to fundamentals.
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Divergence
Although the market pricing for Democrats has risen from 70c to 76.5c, narrowing the gap, it still trails the 90c+ level typically implied by a 'Likely Democratic' rating. The market has not yet fully priced in the significant tailwinds favoring the opposition party in a midterm election.