Theirs been a lot of speculation swirling around lately about the Yanks being willing to trade Xavier Nady or Andy Pettitte going to Houston.
Ultimately, I think these two things are connected. I`m thinking that the Yanks will up their offer to Pettitte to make it 12-14 million. Who else will give Pettitte 10 million? Houston is so cheap that they non-tendered Ty Wigginton. The Dodgers are tied up with the Manny Ramirez talks and really have no need for Pettitte. Their aren't many teams that are willing to go get Pettitte in this economy. The Nady talks are just them showing Pettitte that they have other options. Possibly better options.
Or, they could trade Nady for a starter like Aaron Harang or Jonathan Sanchez. I see them waiting to see how the market develops for Pettitte. Ideally, the scenario above would happen. The Yanks don't really want a long term solution who will be taking up a spot for Hughes the next few years but trading Nady makes a lot of sense.