A chode is the fin-like flap of skin that connects your balls to your asshole. Because this body part is basically useless, the term has become a synonym for a person who does nothing. When used as a verb, it means to waste time in unproductive activity, especially playing videogames. Also to "chode-out".
SPEAKER 1: "I choded out all night with Ultima Online."
SPEAKER 2: "Yeah, I was just choding in front of the tube myself."
SPEAKER 1: "We're such chodes."
SPEAKER 2: "Speak for yourself, chode-muncher."
SPEAKER 1: "Lick my chode!"