I figured I should finish up the shapes and go with Convert to Shape Ellipse in Adobe Illustrator.
In the video above you’ll see a basic application of Live Effects to create a mock-up of an embroidered name badge.
If you watch the video, this will make more sense =)
In the Appearance Panel you can see that I’ve added a new fill behind my live text. I targeted that fill and applied a Convert to Shape Ellipse Live Effect. I went with “Relative” so that my ellipse will update the next time I change the text.
I like using Live Effects so that I can make adjustments as needed.