Increasing Yield on Flowers Foods from 9.2% to 20.6% with Options Strategies

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Flowers Foods, Inc. (Symbol: FLO) shareholders can enhance their income by selling an April 2026 covered call at the $12.50 strike for a premium of 50 cents, potentially yielding an additional 11.3% against the current stock price of $10.71. This would result in a total annualized return of 20.6%, assuming the stock is not called away. Should the stock price rise to $12.50, it would require a 15.3% increase from current levels to trigger this outcome, yielding a 19.9% return along with collected dividends.

The trailing twelve-month volatility for FLO stands at 25%, calculated using the last 250 trading days. As of mid-afternoon trading on Wednesday, S&P 500 put volume reached 684,819 contracts versus call volume of 1.41 million, representing a put:call ratio of 0.48, indicating a preference for calls among buyers.

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