K.C. Johnson of the Chicago Tribune reported last night that the organization was still mulling over whether or not they should extend the 2012 first-round pick. Johnson also said the Bulls had in fact put out feelers on the trade market after some trade speculation popped up a few weeks ago. Mark Deeks even reported that the Bulls were showcasing Teague during the preseason.
Teague didn't play much during his rookie season, but he appeared possibly ready to contribute after an impressive Summer League in Las Vegas. But the second-year point guard didn't distinguish himself in preseason, and it's clear that Tom Thibodeau doesn't really trust him.
The fact that the Bulls signed Mike James to fill out their roster seemed like a hint that the team will continue to pursue possible trades. The fact that his option has been picked up doesn't change that. The Bulls had until Thursday to officially sign Teague to that third year, and it was in their best interest to do that while continuing to monitor the trade market.
Teague is still really young and rather raw, so it's not like he can't improve. If nothing comes along in terms of a trade, it could be worth having the youngster around next year as Derrick Rose's backup if Kirk Hinrich doesn't return or another veteran isn't brought in. Perhaps by then, Teague can be trusted more. And even if not, it's not like his contract is a cap-killer or anything.
The Bulls also have until tomorrow to pick up the fourth year on Jimmy Butler's contract. RealGM's transactions log says the Bulls have already done so, but I haven't seen anything official from the team or any reporters. However, this is pretty much a formality, so it's really nothing to worry about. [Note by JayPatt, 10/30/13 7:16 PM CDT Butler's fourth-year option was indeed picked up, as expected.]