And it should be horizontal or past horizontal (above or at 3 or 9 o'clock), as the sensor fails a bit earlier due to condensation on the sensor.
It can be anywhere along the exhaust after 18" or so from the turbo, but preferably before a working cat if you're running one as the numbers can apparently be inaccurate (this is apparently also bollocks but i've seen it advised over and over).
Stuck in the tailpipe is alright for WOT runs as gas flow is good, but at part or cruise tuning it can be affected by surrounding air unless you've a venturi-type clamp.