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The Rockets exercised their 2026-27 team option for Sheppard on Friday, Danielle Lerner of the Houston Chronicle reports.

Lerner described this as a formality for the Rockets, with Sheppard's option valued at $11.1 million. Through four games, Sheppard is averaging 10.0 points, 3.5 assists, 3.3 rebounds, 1.3 steals and 2.0 three-pointers.

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