Lay the sham face down and cut off the back. Save it for another use. Be careful when cutting it off not to cut the ruffly that goes around the sham.
Fold the sham in half, right sides together. Use another stocking as a template, and lay about .75 inch from the fold.
Line up the top of your template stocking just below the ruffle at the top of the sham.
Using a disappearing ink pen, outline the template stocking on the sham, leaving a one-half inch seam allowance. Cut along the outline and lay scraps to the side.
Keeping right sides together, make sure your two stocking pieces are lined up exactly by lining up the top seams and then smoothing down the rest of the way. Starting at the top, pin the pieces together and set aside for a minute.
Now you need to make a hanger for the stocking. From the scraps of the sham, cut a piece about 6 inches by 2.5 inches.
Rather than trying to sew rights sides together and turning the bulky material, I sew wrong sides together with a straight stitch and then a zig-zag stich. Trim close to the stitching and no one will even notice.
When you get near the end of sewing around the stocking, it's time to add the hanger. Fold the hanger in half (stitched side toward the bottom of the stocking) and place INSIDE the stocking so that when you turn it right side out, the hanger will be on the outside of the stocking. It should look like this.
Once you've sewn all the way around, if you are dissatisfied with the shape of your stocking, just use your marking pen to redraw then lines you don't like, then sew again and trim the edges.