The Houston Rockets reportedly are shopping the contract of veteran Jason Terry while pursuing a trade for Phoenix Suns guard Goran Dragic.  With Houston needing an upgrade at the 1-spot, another potential trade target could be Oklahoma City Thunder guard Reggie Jackson.

The playoffs are around the corner, and Houston is looking to improve at the point guard position for a better chance of making a deep run in the postseason.  The Rockets are expected to be active ahead of the Feb. 19 trade deadline, and Basketball Insiders' Alex Kennedy reported Terry is being shopped.  He also confirmed reports claiming Houston was targeting Dragic and speculated if Dragic can't be had, they could go after New York Knicks veteran Jose Calderon.

"The Rockets have already made two midseason moves, but they have still been working the phones. League sources say they have been dangling Jason Terry's $5,850,313 expiring contract in trade talks, and it seems they're open to packaging it with picks or prospects in order to complete a deal," Kennedy wrote Tuesday.  "... If Houston can't pull off a larger trade that lands them a big-name player like Goran Dragic (who they're pursuing), adding a player like Jose Calderon from New York for Terry's expiring deal could be a back-up plan for Rockets GM Daryl Morey."

Dragic, who's purportedly discontent in Phoenix and is expected to test the free agent market in July, is one of the hottest commodities this season.  The latest report regarding Dragic indicated the Suns, who recently extended guard Eric Bledsoe, would be willing to give him a big payday if he were to commit now to re-signing in the offseason.

Another potential target could be Jackson.  Although it's speculation, trading for the soon-to-be restricted free agent would make sense for the playoff-bound Rockets. Jackson seemingly became expendable in Oklahoma City when the team traded for Dion Waiters earlier this month, and most reports indicate the Thunder are willing to move him

The two big questions regarding Jackson is what Thunder general manager Sam Presti's asking price will be, and whether a team would be willing to gamble by giving up valuable assets for a player who could potentially walk after the season.