You’re on to it, if you can’t 1/4 a circle, putting a circle inside a circle is the next best (if not better) option. Small bore shooting sights are usually a hollow circle at the front and a circle at the back. The target being a solid black circle that the shooter centres in the hollow circle of the front sight. Your effectively doing the same, it’s just that the dot and circle are on different planes, although since you are looking through a scope, rather than open sights, in a sense they are in the same plane.
Accurately centring a circle inside a circle is easier to do than most people would think.
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