Use QuickStitch™ + AutoHole 
to fill an area with small stitches in alternating patterns automatically, while also cutting out 'holes' in the area, by clicking in a color area of the picture. If required, use Color Tolerance to select a larger area according to the similarity of adjacent colors.
Select QuickStitch™ + AutoHole
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In the Quick Create toolbar, click the QuickStitch™ + AutoHole
button. -
Choose Create > Create Area or Line > QuickStitch + AutoHole.
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Press ^⌥Q
Using QuickStitch™ + AutoHole
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Select your fill and border type. See Select a Stitch Type.
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Select the Quick Create
toolbar. -
In the Quick Create toolbar, click the QuickStitch™ + AutoHole
button. -
Click in the color area you wish to fill with stitches.
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Adjust the Color Tolerance to preview the desired fill area and holes, then click OK to confirm.
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Repeat to place as many fill areas as desired.
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Control–click and choose Finish QuickStitch + AutoHole Tool to deselect.
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To edit the new area, Control–click it and choose Properties to open the Area Properties dialog. See Area Properties.
Note: The Color Tolerance dialog will only appear if Color Tolerance is enabled. See Color Tolerance.