latest version of WP Smush.it not optimizing theme’s files???

I remember having the option of optimizing my theme’s image folder under Appearance tab….after receiving a notice that there’s a new version of WP Smush.it came out, I automatically upgraded….I never noticed until I changed my website’s background today that its not there…I’ve googled around to get some answers but no luck…please if anyone have some info on this…thanks in advance!