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Satisfaction of the Principle of Optimality:
The solution to a subsequence ending at index j can be found using the solutions from subsequence ending at index 0 to j-1.
Base Case (longest subsequence ending at index 0):
$$LIS(0)=1$$
Case 1: the character at index j is smaller than the character at index k (for some k)
$$LIS(j)=1$$
Case 2: the character at index j is bigger than the character at index k (for some k)
$$LIS(j)=LIS(k)+1 $$
Solution can be found by taking the maximum:
$$LIS(j)=\max_{k=0\to j-1} {LIS(K)+1}$$