To answer your question, I would run the line UP through the body with a small bead as a stopper between the worm and the hook. Then you could rig Texas, Carolina style or as a dropper rig with one or multiples branching off the mainline with the weight below.

Your color is spot on... We used to use baby rock cod as bait be fore we knew better. That is the go too and is way better than herring or sand dabs. Lings jump all over them. So any variation of brown is money and I my first choice when I am buying tackle.

Good luck!
_________________________
In the legend of King Arthur, the Fisher King was a renowned angler whose errant ways caused him to be struck dumb in the presence of the sacred chalice. I am no great fisherman, and a steelhead is not the covenant of Christ, but with each of these fish I am rendered speechless.