No, that’s no a typo headline, I came across a website here which allows you to buy contracts on weather to hedge against rain, cold, hot, etc. In theory, you could arbitrage the weather as well. I was fascinated and captivated by the possibilities. If you think you’re going to have a harsh winter, why not buy a contract that pays you money if it gets too cold? If the summer is going to be scorching hot, why not buy a contract that pays you $100 for every degree above 97 F to help pay your AC bill?

As I dug a little deeper though, I discovered that these contracts were only available to large clients (e.g. 5 million or more) which disappoints me a bit. I would love to buy some contracts on the weather during the winter and summer. I can easily see myself start a business around this but it’s just not ready for retail clients yet I guess.

Check it out and I think you’ll be fascinated it’s called www.WeatherBill.com