Discover the Power of Optionality
Take control of your future by understanding the power of optionality
Hi There!
Unbelievably, the year 2023 has already begun.
Although your list of New Year's resolutions may contain numerous bullet points, I just want to drop a few notes to remind you about the importance of optionality and how to unlock your potential this year.
What is optionality?
In his book Antifragile, Nassim Taleb advanced the concept for optionality. At the most fundamental definition, optionality is having many options.
He wrote:
“Options, any options, by allowing you more upside than downside, are vectors of antifragility.”
Another thinking about optionality from Mihir A. Desai, a professor of Finance and Law at Harvard written in his article:
“When you hold an option and the world moves with you, you enjoy the benefits; when the world moves against you, you are shielded from the bad outcome since you are not obligated to do anything. Optionality is the state of enjoying possibilities without being on the hook to do anything.”
It’s very clear that the more options you have, the better you are. In any negotiation, your power is greatly influenced by the ability to walk away from a deal.
Wait, are all options equal?
Not at all, you have both good options and bad options. You all, for instance, have free time after work. You can choose how to spend your free time: you can watch Netflix, browse social media, learn a new skill, or conduct research for an investment. Every single option you choose is yours.
A good option is one that offers you unlimited upside potential with limited and capped downside risk whereas a bad option does the opposite.
How to create my optionality?
Good news is you can create options for yourself.
If you are an employee, take the initiative to improve and diversify your skill sets. Invest in yourself by taking courses or attending workshops to learn new skills that will make you more adaptable to changes or challenges.
Do research on your industry and keep up with the latest trends.
Network with other professionals and seek out mentors who can help you navigate your career.
Make sure to stay up to date on your performance reviews and evaluations, so that you know where you stand in your organization.
Another way is you can also learn new skills to work for yourself and become an entrepreneur. This could include skills such as coding, digital marketing, graphic design, web development or investing. Starting your own business is a great way to gain financial freedom, and having the right skills can help you reach success. You can also use these skills to freelance and work remotely. With the right training, you can open yourself up to a world of possibilities.
These types of investment offers unlimited upside potential in terms of personal growth and increased future earnings potential. The downside loss is only limited by the cost of the course's tuition and your time commitment. As a result of the abundance of free resources available today, this risk has significantly decreased.
Finally, don’t be afraid to take risks and explore new opportunities that come your way. With these tips, you’ll be better equipped to take control of your career path and create options for yourself.
Resources:
https://www.thecrimson.com/article/2017/5/25/desai-commencement-ed/
https://taylorpearson.me/optionality/#:~:text=Optionality%20is%20an%20idea%20advanced,one%20or%20two%20job%20opportunities
Cheers!
Do Thi Dieu Thuong