Okafor, Ariza and their ETOs 

April, 5, 2013
4/05/13
12:26
PM ET

ETO. Three simple letters that carry huge significance for some NBA players. ETO stands for "early-termination option," a mechanism that allows a player to opt out of his contract before it runs out. That option is used by a player when he expects his value on the free agent market will be greater than the value of the final year of his contract or if he wants the security of a long-term deal.

As we noted earlier today, a high-end stud like Andre Iguodala, who is due more than $16 million next season, may garner an extension worthy of exercising his ETO. Then there are average players like Washington Wizards Emeka Okafor and Trevor Ariza, who said this week that they have no intention of exercising their ETOs, according to the Washington Post's Michael Lee.