NBA Free Agency: An 8-Step Beginner's Guide 

7. Team Option/Player Option:

- What does it mean?

A team option grants the original team the right to keep a player for another year.

A player option grants the player the power to decide whether to stay for another year or become a completely unrestricted free agent.

In either case, if the option is refused, the player is completely unrestricted and free to sign with any team.

- When is it applicable?

A team/player option is a stipulation in the contract a player signs. The team decides if they want to keep the player in the team option and the player decides if he wants to stay in the player option.

Carmelo Anthony has reportedly exercised his player option

- Example:

1. Carmelo Anthony has a player option to opt in for the last year of his contract for the 2018-19 season at the Oklahoma City Thunder (he has opted into it).

2. Dirk Nowitzki has a team option in his current contract where the Dallas Mavericks decide whether to exercise it or to let Dirk off.