Before Free Agency officially began overnight into Wednesday morning, the Bulls had already made their decisions in not guaranteeing the 2012-13 contracts of CJ Watson and Ronnie Brewer. Kyle Korver had different language in his deal, thus pushing the Bulls decision with him back.
A different source said the Bulls were exploring sign-and-trade possibilities that could send Kyle Korver to the Minnesota Timberwolves or Atlanta Hawks, although his return to the Bulls hasn't been ruled out.
The decision to pick up Korver's $5 million option for next season doesn't have to be made until Sunday.
John Hollinger noted the Hawks have a trade exception (after the Joe Johnson deal) that could fit in Korver's contract. The TWolves situation is completely in flux with their own pursuit of Nic Batum.
PeachtreeHoops sees this as an odd fit for the Hawks, given they acquired shooters-only Anthony Morrow and John Jenkins in the offseason, and lack perimeter defense currently. Someone tweeted me the idea of working out a trade after the Hawks signed Hinrich (who they have the bird rights to), so the Bulls keep their Mini-MLE. I think that could technically work, but it'd have to be in some precise sequence given the Hawks other moves.
It's also worth noting that if the Bulls trade Korver, they do not have to pay the $500k guaranteed to him if they waived him.