Option One
Despite the fact that most of the people in out class think that what Stephen Glass was dumb-which in a certain sense he was-he also understood how people work. What he lacks in actual fact, he makes up in false humor and witty one-liners. He gets that if you are charming and funny and "humble', people will believe you. Throughout the movie, he repeatedly tells the receptionist that her lipstick's nice, or her hair looks exceptionally good that day, but once she leaves he says to whoever is in the room with him (and someone has to be in the room with him) that he should really stop being so very nice all the time and that it's a problem. None of this is genuine. Everything he says and does to his coworkers and editors is fabricated and said to make them think he's a good person. He's so confident in his supposed stories that to the editors and staff, there is no way that such a good story could be fake, which is how Michael Kelly acted when he was editor. Even on those stories when he's done exploding with humor and amazing detail, he sits back down and fakes low self esteem and doubt that its any good. Which may be why the staff were so easily convinced that he was suicidal at the end of the movie. After all, normal people don't show that much insecurity in really good stories that they've found. by faking that humbleness, he not only made himself seem more human, he also made himself seem vulnerable and a little sad.
When Chuck took over for Michael, he immediately saw through the act that was being put on. And because of that, Stephen was afraid and started telling his coworkers or "friends" that Chuck had hated him before becoming editor and that he was still going after him because his stories were so good. This instilled a deeper bond between Stephen and his friends, which made it even harder for Chuck to get people to believe him. Stephen later goes on to tell people that a good editor backs up the reporter no matter the reason no matter the issue. But this is not true. While it is important to establish trust, it is also important to do what's best for the paper, and if that means going to the places mentioned and talking to the people there to fact check, then you need to do that. You have to protect the paper. Everyone saw Stephen as someone young and innocent and to be protected, and this is what Stephen needed them to believe. But he wasn't and he played all of them.