This page demonstates how the slideshow container can be resized to match the height of the current slide. This is done by setting the data-cycle-auto-height attribute to "container".

<div class=center>
    <a href=# id=prev><< Prev </a>
    <a href=# id=next> Next >> </a>
</div>

<div class="cycle-slideshow" 
    data-cycle-fx=fadeout
    data-cycle-timeout=0
    data-cycle-prev=#prev
    data-cycle-next=#next
    data-cycle-loader=wait
    data-cycle-auto-height=container
    >
    <img src="http://placehold.it/400x300">
    <img src="http://placehold.it/400x200">
    <img src="http://placehold.it/400x400">
    <img src="http://placehold.it/400x350">
    <img src="http://placehold.it/400x550">
    <img src="http://placehold.it/400x150">
</div>