Most voters voted #2 but I use #1 for all guns and all sights, setting the sight to put my shot just above the front blade or crosshair. As a former target shooter I find "balancing the ball" on the front sight much easier and more accurate than trying to estimate the center of the bull. After sighting the gun in this way I effectively have #2 perfectly set.
Try it and you will find it much easier and much more accurate.