I think if I understand you right you meant the design since the hoop can not be changed.
I think it depends on the placing of the fabric. What ever fits . Since your frame now is longer on one side you may want to flip your deign 90 degrees to make it fit better. Ha, ha I have a hard time too explaining it. Wait til Chris comes along she can do it in a picture version.

I would say either turn the design or the fabric. I've done it both ways. You might want to do a little test. I have just done enough to see if the design fits, not the whole design.

I believe when you mark your center point on your material to be monogramed, then you will see where you need to place your hoop and how to turn your hoop for the best advantage. I do find if I am unsure of how the design will fit the area, I print it out. Then using chalk, I mark the outside letters on the back of the printout. Then when I place the printout onto the material to be monogramed I can rub the outside letters for a pattern of where I need the hoop to be.
Maybe I didn't confuse you with this explanation.
Hugs and happy embroidery.

Turning your design and placing your project accordingly let you embroider names that are wider than 5" or border designs etc. i think I have made more embroideries that way than in the upright position.

Turn your design on to it's side.