By 1800 UTC on the 22nd, banding measurements on visible satellite pictures indicated that the cyclone was of tropical storm intensity. The storm was moving west-northwestward, and this general direction of motion (at around 10 knots) continued for the next couple of days. Strengthening took place, as the upper-tropospheric environment favored adequate outflow from the tropical cyclone. Olivia became a hurricane around 0600 UTC on the 24th, based on intensity estimates of 65 knots from both TSAF and SAB, and a report of a "warm spot" surrounded by 60 percent eyewall coverage on 85 GHz data from the Air Force Global Weather Central (AFGWC) near that time. After Olivia became a hurricane, it strengthened rapidly; maximum winds were near 95 knots by 1800 UTC on the 24th. A distinct eye was evident on satellite images at that time, and, a few hours later, radar observations from a NOAA research aircraft investigating Olivia showed a well-defined eye (about 15 nmi in diameter) as well. Central pressure was falling while the plane was in the hurricane, and was down to 949 mb on the last fix on the 24th, at 2224 UTC. Around this time, Olivia turned toward the northwest, as the hurricane moved around the periphery of a deep-layer mean anticyclone.
Later on the 24th and early the next day, the hurricane continued to strengthen, and reached its estimated peak sustained wind speed of 130 knots around 1200 UTC on the 25th. A mid- to upper-tropospheric cyclone, located a few hundred miles to the west of extreme southern California, induced a turn to the north by 1800 UTC on the 25th. After 0000 UTC on the 26th, under the continuing influence of the mid- to upper level low, Olivia veered toward the north-northeast, while gradually weakening. Southwesterly shearing was having a noticeable effect on the hurricane's cloud pattern. Later on the 26th, with Olivia's maximum winds reduced to below 100 knots, the forward motion slowed and became northeastward. Located a little over 500 nmi west-southwest of the southern tip of Baja California, the weakening, drifting hurricane made a small clockwise loop. Just after completing the loop, Olivia diminished to tropical storm intensity, when most of the deep convection disappeared. Continuing to weaken, and steered by the lower- to mid-tropospheric flow, the tropical cyclone moved west-northwestward, then westward. Olivia degenerated to a tropical depression around 1200 UTC on the 28th, and was dissipating around 1800 UTC on the 29th.
There were no ship reports received at the NHC of tropical storm force winds associated with Olivia.