paragraph text flow around curve in x7?

Is there a way to have paragraph text flow around an ellipse, circle, or freehand shape like it did in x5 and previous? In x7, it's flowing to the rectangular footprint of the circle.

In the graphic below I want it to flow up against the red ellipse (the way it worked in x5 and previous), not flow to the red dashed paragraph frame rectangle. Is there a toggle?