HomeDefinitionsCompareDebt Butterfly shiftThe financial definition for Butterfly shift:A nonparallel shift in the yield curve involving the height of the curve. Similar MatchesButterflyButterflyIn the context of equities, a firm with two divisions may split into two companies and issue original shareholders two shares (one in each of the new companies) for every old share they have. Butterfly spreadButterfly spreadApplies to derivative products. Complex option strategy that involves selling two calls and buying two calls on the same or different markets, with several maturity dates. One of the options has a higher exercise price and the other has a lower exercise price than the other two options. The payoff diagram resembles the shape of a butterfly. Click to compare definitions of Butterfly shift Click to view definitions beginning bu |