With the NBA trade deadline day bringing trades thick and fast, another one has just been completed. It involves the New York Knicks and the New Orleans Pelicans. Point guard Jose Alvarado, nicknamed “Grand Theft,” for his penchant for steals, is headed to the Knicks. In exchange, the Knicks are flipping Dalen Terry, whom they recently acquired, along with two second-rounders, to the Pelicans.
The red-hot Knicks, winners of eight straight games, have to feel good about this deal to strengthen their depth for the second half of the season and the playoffs.
Let’s give out the immediate trade grades and analyze the trade from both sides.
Knicks Flip Cap Nightmare Into Jose Alvarado Heist in 24-Hour Masterclass
From the Knicks’ perspective, this feels like a clear win. 24 hours ago, they were in a tough spot. Just $100k from the second-apron and lumbered with Guerschon Yabusele’s contract after a disastrous mid-level exemption signing last summer, plus his player-option that lowered his value significantly around the league, it was hard to see how they could move him without giving up needed draft capital.
However, after the Knicks’ double- OT win over the Nuggets on Wednesday, it was announced that the front office managed to trade him to the Chicago Bulls for Terry straight-up. Then, hours later, they were able to re-route him to the Pelicans for a player of need, Alvarado.
Just in: The New Orleans Pelicans are trading Jose Alvarado to the New York Knicks, sources tell ESPN. Homecoming for the Pelicans guard. pic.twitter.com/OEG3GVFX05
— Shams Charania (@ShamsCharania) February 5, 2026
The added bonus for a Knicks perspective is that this deal actually saves them money and gives them increased payroll flexibility. Per James L. Edwards, Terry’s annual salary was $5.4 million, and Alvarado’s was $4.5 million. By saving a million dollars, they will now be able to scour the buyout market, potentially for a backup big.
Alvarado is a pesky defender. With active hands and his ability to make game-changing defensive plays off the bench, he will fit perfectly in New York. His profile of a high-IQ point guard, a solid shooter, and a tough-as-nails defender is one that the New York fanbase particularly appreciates. Furthermore, this is an opportunity for him to come home, as he was born in Brooklyn.
The added upside is the recent report that the Knicks managed to keep sharp-shooter Landry Shamet out of the deal, and Alvarado will step in for the injured Deuce McBride, who is reportedly due for surgery for a core muscle injury that will keep him out until the playoffs.
This means that Alvarado makes up for the loss of McBride’s defense. Plus, Tyler Kolek, their emerging sophomore playmaker, will still have a role on the team despite this trade for another point guard.
Essentially, the Knicks not only got better but also gave up nothing of significance and saved money in the process. A win-win for Leon Rose.
Knicks Trade Grade: A
Pelicans Take A Flier On Potential Upside
Terry hasn’t quite taken off in the NBA as yet. He has raw intangibles that, with a consistent role, can be developed. He offers athleticism and the ability to steal and jump passing lanes. He could profile as a 3-and-D type, as he hits a solid 41% from behind the arc this season, with his perimeter shooting improving each year.
Nevertheless, he’s only averaged 11 minutes so far this season and 3.5 points per game, and he’s already in his fourth year, so his role on the Pelicans remains a question mark. There’s no real commitment here, as he’s a restricted free agent after this year, so they can shed the contract if it doesn’t work.
They also receive two second-round picks from the Knicks in the deal, which may be the most valuable aspect of the trade.
Alvarado likely suits a playoff team more due to his skill set off the bench, so it makes sense to move him for draft capital. But it’s not a great return for an impact player, and being unable to push for Shamet in the deal, given reports that the Knicks were actually desperate for a backup point guard due to McBride’s injury, means the Knicks are the clear winners of the trade.
Pelicans Grade: C
