The Houston Rockets have exercised the $14 million fourth-year team option on guard Reed Sheppard for the 2027-28 NBA season, keeping the former third overall pick under contract for another year.

Houston selected Sheppard with the third pick in the 2024 NBA Draft, and the young guard is now entering his third season with the franchise.

Through four games this season, Sheppard is averaging 10.5 points, 2.8 rebounds and 4.8 assists in 23.3 minutes per contest.

Although he has established himself as a capable outside shooter, Sheppard has struggled from three-point range early in the campaign.

He is shooting 28.1% from beyond the arc, compared to his career average of 37.9%.

Last season, Sheppard appeared in all 82 games for Houston, averaging 13.5 points, 2.9 rebounds and 3.4 assists in 26.2 minutes per game.

He also made 21 starts during the campaign.