The New York Knicks acquired point guard Jose Alvarado from the New Orleans Pelicans in exchange for guard Dalen Terry, two second-round picks, and cash.
The trade is a homecoming for Alvarado, a Brooklyn native who attended Christ the King Regional High School in Queens.
Originally signed by the Pelicans as an undrafted free agent in 2021, Alvarado developed into a fan favorite and key bench weapon for New Orleans. He's averaging 7.9 points, 2.8 rebounds, and 3.1 assists with a 41.8% field-goal percentage and 36.3% 3-point percentage across 41 games this season.
The 27-year-old is earning $4.5 million this season and owns a $4.5-million player option for 2026-27.
Jose Alvarado picking up his player option would give the Knicks significant flexibility below the second apron next season.
— Yossi Gozlan (@YossiGozlan) February 5, 2026
It would help them maximize their depth under the second apron hard cap they'd be subjected to if they can acquire Giannis Antetokounmpo in the offseason. https://t.co/hJU6AqZNke
Alvarado boosts the Knicks' guard depth for the stretch run behind starters Jalen Brunson and Mikal Bridges. He'll also help cover for the loss of shooting guard Miles McBride, who may miss the rest of the regular season after sustaining a sports hernia, sources told The Athletic's Fred Katz and James L. Edwards III. McBride will reportedly undergo core surgery Friday to repair the hernia.
Terry was flipped to New Orleans less than 24 hours after the Knicks acquired him from the Chicago Bulls for Guerschon Yabusele.
The Bulls drafted Terry 18th overall in 2022. Over his four NBA seasons, he's averaged 3.5 points, 1.7 boards, and 1.2 assists per game while shooting 44.4% from the field and 31.9% from behind the arc as a bench piece. This year, he's shooting 44.1% overall and 41.3% from 3-point range while averaging 3.5 points per game in 34 appearances with the Bulls.
The 23-year-old is in the final season of his rookie deal and will become a restricted free agent this summer.
