Choose a sight picture with which you are comfortable. Either provided will work; however, I have always taught that, at your most common (read, "desired common") shooting distance, do not let the sights obscure your target. Consequently, if the sight pictures you provided are for your desired most common or expected self-defense encounter, you should choose #1 in my opinion.

As for range holster, there are certain considerations to take into account. Once again, in my opinion, you are better served to continue to use the holster you use for concealed carry. Having said that, I know, for convenience sake, we sometimes feel the need to use a different holster for range work, when just recreational shooting, for lack of a better term. In that case, any owb holster or drop leg/thigh holster, works well. OP, you may be seeking specific makes/models. If so, I apologize for not providing that. The list is almost endless. I will only go one step further to say, if not practicing with your daily carry holster, as you stated in your first post, I would suggest a good Kydex OWB or drop leg for a simple day at the range for recreational shooting.