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The Game Plan

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Electronic Arts is going hostile on rival video-game maker Take Two. What's the best way for you to play this game? Pete Najarian has all your options.

Video game maker Electronic Arts Inc.on Monday urged Take-Two Interactive , the publisher of "Grand Theft Auto" to quickly accept its unsolicited $2 billion takeover bid, saying it's only a matter of time before it declares "game over" and pulls its premium offer.

EA wants an agreement on a deal before the release of "Grand Theft Auto IV." Take-Two Interactive Software Inc. says it's willing to talk, but only after the next installment of its popular crime game goes on sale in April.

EA's $26-per-share cash bid sent Take-Two's stock soaring more than 52 percent in Monday midday trading. The offer represents a 64 percent premium over Take-Two's closing stock price of $15.83 on Feb. 15, the last trading day before Redwood City, Calif.-based EA made its proposal. The offer wasn't announced until Sunday.

I feel Electronic Arts has very much underperformed over the last year, explains Pete Najarian on CNBC’s “Closing Bell. They appear to be panicking and might be willing to overpay to get their hands on the Grand Theft Auto franchise.

It seems to me that most investors expect the deal to get done at $26/share. However the TTWO board thinks the stock is worth more.

How do you trade it?

I recommend buying put options on Take-Two, counsels Pete Najarian, because if the deal falls apart the stock could very well plunge lower.

Or if you want to get long a stock, look at competitor Activision, which I consider a best of breed play, Najarian adds.

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Trader disclosure: On Feb.25, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Macke Owns (ATVI), (YHOO), (DIS); Najarian Owns (C), (MS), (MSFT), (XLF), (YHOO); Najarian Owns (CCOI) Calls, (AA) Calls, (NTAP) Calls; Najarian Owns (ACI) Calls; Finerman Owns (GS); Finerman's Firm And Finerman Own (HD); Finerman's Firm Owns (MSFT), (SUN), (TYC), (WMT) (YHOO), (AAPL); Finerman's Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM), (COF), (LEH); Finerman's Firm Owns Shares Of Royal Bank of Scotland Group plc; WWE Programs Air On Networks Of NBC Universal, The Parent Company Of CNBC; Vivendi Owns 20% Of NBC Universal, The Parent Company Of CNBC; GE Is The Parent Company Of CNBC