Trace around the CD onto red felt and cut out the circle. Glue the circle to the CD. Make a half-circle black head, a little smaller than half the CD, and glue it into place. Use a piece of the chenille stem to make a line down the ladybug's back. Cut small, black circle out of black felt and glue them onto the ladybug's back. Add wiggle eyes, and for extra detail, chenille stem antennae.
Now, how about making a CD panda...