By Jud Pyle, CFA, chief investment strategist for the Options News Network

News broke before the market opened ahead of expiration Friday that China plans to lift a ban against U.S. pork that has lasted nearly one year. Though this information has barely affected the meat products company's shares, at least one

Tyson Foods

(TSN) - Get Report

investor loaded up on calls and expressed longer-term bullishness.

After dropping slightly during morning trading, TSN shares are currently trading up 13 cents to $17.78. The stock continues to edge up toward its 52-week high of $17.90 so far today, and one investor could be expecting the shares to reach new highs prior to January 2011.

During morning trading, 6,000 January 2011 17.5 calls changed hands simultaneously with 12,000 January 2011 20 calls. In this call one-by-two, the investor paid $1.15 per contract for the 20-strike options and also paid $2.15 per contract for the 17.5 calls. Yes, that's right, the investor bought both legs on a very bullish bet that TSN shares could rally at least 15% throughout the longer-term.

While this strategy maintains a long position in the stock, the volume discrepancy moves the breakeven price to $20.65, at which point investors could make unlimited profits if TSN shares soar higher. This trade caps any losses at $2,670,000 if TSN shares drop below $17.50.

Implied volatility of the January 17.5 calls is 32% and the January 20-strike calls have an implied volatility of 30%, compared to a 30-day historical volatility of roughly 25%. The 17-strike calls have gained 20 cents, while the 20-strike calls have gained 15 cents so far on the day. The options are up by more than the stock. That is a great example of increasing implied volatility.

Jud Pyle is the chief investment strategist for Options News Network and the portfolio manager of TheStreet.com Options Alerts. Click here for a free trial for Options Alerts. Mr. Pyle writes regularly about options investing for TheStreet.com.

Jud Pyle, CFA, is the chief investment strategist for Options News Network. Pyle started his career in finance in 1994 as a derivative analyst with SBC Warburg. After four years with Warburg, Pyle joined PEAK6 Investments, L.P., in 1998 as an equity options trader and as chief risk officer. A native of Minneapolis, Pyle received his bachelor's degree in economics and history from Colgate University in 1994. As a trader, Pyle traded on average over 5,000 contracts per day, and over 1.2 million contracts per year. He also built the stock group for all PEAK6 Investments, L.P. hedging, which currently trades on average over 5 million shares per day, and over 1 billion shares per year. Further, from 2004-06, he managed the trading and risk management for PEAK6 Investments L.P.'s lead market-maker operation on the former PCX exchange, which traded more than 10,000 contracts per day. Pyle is the "Mad About Options" resident expert. He is also a regular contributor to "Options Physics."