Call Options on IPXL on 8/6/2012

Impax Laboratories (IPXL) is a specialty pharmaceutical company. It engages in the development, manufacture, and marketing of bioequivalent pharmaceutical products. The company operates in two divisions, Global Pharmaceuticals and Impax Pharmaceuticals. The Global Pharmaceuticals division develops, manufactures, sells, and distributes generic pharmaceutical products. It provides its generic pharmaceutical prescription products directly to wholesalers and retail drug chains; and generic pharmaceutical over-the-counter and prescription products through unrelated third-party pharmaceutical entities. The Impax Pharmaceutical division develops proprietary brand pharmaceutical products that address central nervous system disorders, including Alzheimer's disease, attention deficit hyperactivity disorder, depression, epilepsy, migraines, multiple sclerosis, Parkinson's disease, and schizophrenia, as well as promotes third-party branded pharmaceutical products. The company markets 101 generic pharmaceuticals, which represent dosage variations of 29 different pharmaceutical compounds; and another 16 of its generic pharmaceuticals representing dosage variations of 4 different pharmaceutical compounds. It markets and sells its generic pharmaceutical prescription drug products in the continental United States and the Commonwealth of Puerto Rico. The company has a strategic alliance agreement with Teva Pharmaceuticals Curacao N.V.

Stockwinners is bullish on IPXL for the following reasons:

1. Shares have formed a bullish "flag" and are expected to move higher out of this formation.

Trade: Buy 1 AUG 22.50 CALL for less than $1.60

Breakeven and Profit:

• Breakeven at $24.10 on AUG expiration
• Profit above $24.10 , unlimited potential gain
• Losses btwn$24.10 to $22.5 up to $1.60 , max loss of $1.60 below $22.5

Here is the payoff table:

Trade Buy 1 January $50.00 Call at $1.60 For a net debit of $1.60 Profit/Loss Analysis Breakeven at $51.60 Maximum profit is unbounded Maximum loss is ($160.00) at strike of $50.00 Closing Summary Sold 1 January $50.00 Call at $1.80

Position closed on 8/17/2012 at price of $1.80 with a 12.50% gain in 10 days.

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