The stock market has shown much volatility in the past three months, with the major market indices reaching new highs and then falling back down. The reason for this bullishness has been an improvement in economic data and much stronger earnings in the third quarter. However, expectations have become so high that it has been difficult for stocks to reach new highs despite the positive news. In fact, there is a wide range of forecasts for the stock market, with analysts expecting everything from the Dow ($INDU) to reach 11,000 - to a severe drop for the indices. However, another possibility is that the major market indices will consolidate some after such a huge run up in price this year. Thus, we have decided to look at a neutral trading strategy called a butterfly.