Holliday, a 5-foot-5 former LSU track star, secured his spot on the team after returning his third kick for a touchdown Thursday night in Houston's last preseason game.
''Trindon's a lot better football player than he was the last two years,'' coach Gary Kubiak said of Holliday, who also plays receiver. ''Trindon can go play on the offensive side of the ball ... I think he's a much more complete player as far as us finding ways to use him as a player. But what he did throughout the course of this preseason was exceptional and his spot on this team was well earned.''
The Texans chose John Beck as their third-string quarterback, which left Keenum, an undrafted rookie who set NCAA passing records at the University of Houston, without a spot on the team.
''John had a good camp,'' Kubiak said. ''I thought last night he played exceptional. He gives us some security there. He knows our system moving forward.''
Kubiak said they might sign Keenum to the practice squad to add depth at the position after Houston was left to look outside the team for backups last season when its top two quarterbacks were lost to season-ending injuries.
''He's getting great consideration from that standpoint so we're going to make sure we got enough guys knowing our system moving forward so we don't get caught like we did last year and having to scramble in such a tough time,'' Kubiak said.
The Texans also traded cornerback Sherrick McManis to Chicago in exchange for fullback Tyler Clutts.
''We think he's got a lot of ability and he's a young, ascending player,'' Kubiak said of Clutts. ''So we got a lot of catching up to do. We'll get him in here tomorrow and get him started, but we think he can help this team.''
Houston also released veteran fullback Moran Norris and former Oklahoma standout wide receiver Juaquin Iglesias.
Also released on Friday were tight ends Logan Brock and Philip Supernaw, defensive ends Keith Browner and Mitch King, linebackers D.J. Bryant, Delano Johnson, Shawn Loiseau and Rennie Moore, nose tackles Hebron Fangupo and David Hunter, running back Jonathan Grimes, receiver Jeff Maehl, tackle Nathan Menkin, safety Eddie Pleasant, center Cody Wallace and guard Cody White.