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WON climate
Will the high temp in LA be >78° on Mar 1, 2026?
The Setup
The market asks if the high temperature at LAX will exceed 78°F (requiring 79°F+). While yesterday reached 79°F, today's maximum appears to have peaked at 77°F (25°C) around 11 AM before a sea breeze cooled the airport. At 20% (YES), the market is pricing in a 1-in-5 chance of a late rally or data surprise, which contradicts the current cooling trend.
The sea breeze arrived early (11 AM), capping LAX at 77°F—two degrees short of the payout. With onshore winds now blowing at 12 knots, the high is likely set.
Market
80c
Our Estimate
90-99c
Edge
+15c
Bull Case
The only path to a YES resolution is if the 10:53 AM observation of 77°F (25°C) was not the true daily maximum, and a brief spike to 79°F occurred between observations or is yet to occur. Yesterday (Feb 28) reached 79°F, demonstrating that the air mass is capable of supporting temperatures above the strike price. If the sea breeze (currently 250° at 12kt) temporarily weakens or shifts offshore in the late afternoon—a phenomenon known as a 'late-day pop'—temperatures could surge 2-3°F quickly.
Additionally, the Robinhood market for '>72°F' is trading at 67 cents, which implies some uncertainty about the high temperature, potentially suggesting that the 77°F reading is not yet viewed as 'locked in' by all participants. If the official NWS climate report adjusts the raw METAR data upward (e.g., if the 5-minute ASOS data captured a 79°F spike that the hourly METAR missed), the market could resolve YES unexpectedly.
Bear Case
The meteorological setup strongly favors NO. A METAR observation at 10:53 AM PST (18:53 UTC) reported 77°F (25°C) with winds shifting to the west-southwest (250°) at 7 knots. By 12:53 PM PST, winds had strengthened to 12 knots from the west, a classic sea breeze signature that typically caps or lowers temperatures at coastal locations like LAX for the remainder of the day. Current indications suggest the temperature has already dropped to 68-71°F as of 2:00 PM PST.
Furthermore, the resolution rule requires the high to be *greater than* 78°F (i.e., 79°F or higher). The maximum observed so far is 77°F. METAR rounding rules dictate that a report of 25°C corresponds to a temperature strictly below 77.9°F (since 25.5°C rounds up to 26°C). Thus, the temperature has likely not even touched 78.0°F, let alone the 79°F required for a payout. With the sun angle decreasing and the marine layer influence growing, a late-day rally of +2°F against the wind is meteorologically improbable.
What Could Go Wrong
IF the sea breeze was weaker than reported or the sensor is located in a microclimate that shielded it from the initial onshore flow, THEN the temperature could have spiked to 79°F between the hourly observations (e.g., at 11:30 AM).
IF the NWS Climatological Report undergoes a quality control adjustment that revises the 25°C reading upward to 26°C (79°F) based on 1-minute sensor data not visible in standard METARs, THEN the market would resolve YES despite the hourly data suggesting otherwise.
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