Billiards Quiz - what happens next

In a game of regular English billiards say you end up potting the opponents ball(white) and cannoning the red. Your ball(yellow) ends up touching the red as a result of the cannon.
What happens next?

1. Since its a touching ball, you can claim position with red on its spot, opponents white on the center spot and your ball in hand to play from the D.
   
2. Since its a touching ball, the red gets spotted and you get your ball in hand while the opponents ball stays in the pocket. Max you can score from this position is a further 15 hazards.
   
3. You can't claim position since the opponents ball is potted. You don't get your ball in hand either. You have to play away from the touching red.
   
4. Combination of one of three options above + something else which theoretically allows you to get all 3 balls in play at some point and keep scoring legally. Provide details/justification if you select this option.

Billiards Quiz - what happens next