Sometimes yes, sometimes no, sometimes a bit of both.

I think the best is when the nicest bits ARE wrapped, with little loose items not wrapped to pique the interest--with something perfect and whimsical in the toe of the sock. But there are always candies and fruit that wouldn't naturally be wrapped. Filling a holiday stocking is an art, I tell you.

This year nothing is wrapped in the stockings, because I have been a bit 'whelmed.

EDIT: It's important, when the kids still Believe in Santa, that any artifacts of Santa that are wrapped be in different paper. So if the stockings are wrapped, you see, it can't be in the same paper as any family gifts, which can present logistical difficulties.