Place popped corn and chili powder in 1 gallon resealable bag; seal. Crush popcorn mixture with rolling pin to a medium-fine consistency; place in shallow dish.
Combine processed Mexican cheese, cream cheese and olives in medium bowl until blended. Shape into ball.
Roll cheese ball into popcorn mixture until completely coated. Serve immediately with tortilla chips, if desired; store leftovers in airtight container in refrigerator.