Concept · Investment & Valuation

Optionality

Origin: Taleb / finance

Biological Parallel

Plant seeds with polymorphic germination strategies maintain optionality—some germinate immediately while others remain dormant for years. This isn't indecision; it's preserving future choices without committing to current conditions. If this year's rainfall pattern is favorable, immediate germinants succeed. If drought hits, dormant seeds preserve the option to germinate in better years. Taleb's optionality mirrors this: maintain the right to exploit future opportunities without obligation, where upside participation comes without corresponding downside commitment.