In the two photo's shown below, which way do I need to place my peep to have a correct sight picture using the green pin? I have always placed the pin in the center of the peep and shot. However, am I suppose to place the circular housing centered in the peep and then place the pin on my intended target demonstrated in the second picture?? (Sorry, my drawings are the best I can do in short time!) Which do you prefer?

Green Pin centered in Peep.


Ring on Housing centered in Peep, green pin set on intended target.