Where does the biggest rubber O-ring on the oil filter go?

1) All the way to the top of the assembly, on the ridge just below the cap. This scenario would make it so that when the filter assembly is installed you can see the rubber between the plastic cap and the metal housing.

2) Or does it go at the top of the threads, below the ridge. This scenario would make it so that it is recessed down inside the housing when installed.

 

well where did you take the old one out of?
IIRC, It goes just above the threads.

 

Can't remember where it was from the factory. On my previous oil change I had it all the way to the top of the assembly, just under the cap, so that it squeezes between the cap and the steel housing and was still be visible when installed. This time I put it there and it leaked about a quart of oil (what a mess). So I just changed it so that it is in the space at the top of the threads on the assembly, so when installed it cannot be seen. It is down inside the housing... so far so good.

Could someone check theirs (assuming you haven't changed your oil yet) to see how it comes from the factory?