CBOE Volatility Index (VIX) is recently down 1.16 to 19.05, below its 10-day moving average of 22.74, and above its 50-day moving average 18.81.

GameStop Corp. (GME) April 21 and 22 calls are active on call option implied volatility of 42, compared to its 26-week average of 36, according to Track Data. Active call volume suggests traders positioning for larger price movement in Q4 results that are expected to be released on March 24.

Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.

Take-Two Interactive Software, Inc. (TTWO) reported earnings for the fiscal third quarter yesterday after the bell. Today, the market expressed its pleasure with the results. In fact, a new 52-week high of $15.50 was set this session.

At the time of this writing, the quote going across my screen was $14.82, a price that was representative of a 2% gain. Volume conviction is definitely present. Looking at the one-year chart, it can be seen that the uptrend in the shares continues on following the making of a low point near the end of August.

Dawn Kawamoto over at DailyFinance wrote an article discussing THQ Inc. (THQI). She brings into focus a licensing deal between the video-game publisher and Mattel, Inc. (MAT). There was also mention of the incredible price action in the stock. So, what are investors to make of the thesis? What about traders?

This is a tricky one. And I've been wrong about THQ's prospects before. It's certainly difficult to predict the movement of a stock that's priced in the single digits. At the time of this writing, the shares were trading at a quote of $6.26.

I've written a lot about Blizzard (ATVI). It's a fun stock to watch. And the company is pretty fun, too. How can you not like the business behind both Call of Duty and Pitfall?

Those who've read my prior pieces on this subject probably know what I'm about to say in regard to the recent bullishness in the shares: Take profits now. Yes, the stock continues to scare me a bit. Well, maybe more than a bit. I know that the latest Call of Duty title is doing incredibly well at retail, but I also know that Guitar Hero is no longer on every teenager's Christmas wish list. Offsetting elements can be a problem, keep in mind.

If you took a look at the very recent movement in Nintendo's (NTDOY) American Depositary Receipts (ADRs), you would probably come away thinking that they could be a buy. Hey, they very well could be.

However, if you took a look at a recent Reuters article, you might suddenly question the idea of stocking up on those very same ADRs. That's because, simply put, the cultural status of the Wii seems to be further weakening. Not only that, but the extremely popular Nintendo DS handheld system is facing increasing competition from other devices.

GameStop Corp. (GME) is down about 3.8% at the time of this writing. That places the quote at $20.20. Volume is pretty heavy. The 52-week low for the stock is $17.12; the 52-week high is $26.05. Looks like the market isn't exactly sure what to do with this company as the shares are at a comfortable distance between the two extremes.

Earlier today, the video-game chain reported earnings for the third quarter. According to the press release, net income, on an adjusted basis, came in at 38 cents per share. That was one penny above the estimate. Total company same-store sales increased 1.1%.

Activision Blizzard (ATVI) was, at the time of this writing, off by 3% to a quote of $11.28. Strong volume accompanied the dip. It's a shame, because the latest earnings report wasn't all that bad.

According to the Associated Press, adjusted income of 12 cents per share was three pennies ahead of the consensus estimate. The top line, after taking into account some items, also beat projections. Furthermore, management raised its outlook for the full fiscal year.

Let's face it: the chart for Electronic Arts (ERTS) isn't encouraging. And Wednesday's price action, the day after the video-game publisher's fiscal second-quarter results were released to investors, was awful: the stock lost over 4%, settling on a quote of $15.50, not too far away from the 52-week low of $14.06.

Shareholders would love to see a breakout above $20.24. When will it happen? Difficult to say. Remember that the industry has been suffering.

Activision Blizzard (ATVI) will be issuing its third-quarter earnings release on Thursday, November 4. How should investors view the stock?

Right now, I'm not so positive on the shares. They were trading at a quote of $11.39 at the time of this writing. The 52-week low for the shares is $9.93; the 52-week high is $12.58. The chart shows an up-down pattern that probably doesn't inspire a lot of confidence in investors. You get the feeling that putting capital to work in this name will inevitably lead to a dead-money situation.