I think if the massage story didn't occur you'd see a different posture from Watson (ala Aaron R), but with the looming issues he figures I might as well get paid and force the texans to move me w the baggage at hand. Now the Texans have to decide: Trade, Hold, or wait for the commissioners office to do something.
Trade: well, that goes back to what is Watson worth in his current state? If I'm any team wanting to trade for him, its a gamble vs what you are willing to pay. Miami or Philly have picks to give, and philly isn't really in a win now mode, so Watson seems like a good spot if they can make it work without giving up all their draft capital. Miami likely tries to do this on the cheap, New England style. As such, I do not think they will be in the running for real, unless somehow Xavien Howard ends up in the mix (ie they get a bounty of picks for him and send that to houston or something). Denver seems to be holding out for Rodgers at this point, but maybe they dip their toe here?
Hold: Well, I think this is a bad idea. If Watson gets past this issue, he will go back to wanting out. If he doesn't then your most tradeable asset is on the shelf.
Wait for the commish: Seems like a bad idea in the same light as the "hold" option.
If I'm the Texans; I trade him for picks and forget about getting a QB back. Figure letting Miami or Philly hold onto their young QBs allows them a hedge vs a suspension and likely gets the texans an extra pick in the process. Have tyrod do a "gap year" (ala Fitzmagic in DC) and go after a QB next year.