This is not a complete answer - I have given you a bit of a broad answer to a broad question but I hope it can help you in creating what you need.
I created a very similar mechanic recently -
I used enterFrame to call a function, lets call it BuildHook, this would check the position of the hook and the position of the starting point and then calculate how many pieces of images would be needed to fill out the space. The graphic I had as my "hook" was partially larger then the chain pieces allowing for it to overlap and only put a new image once enough space between the last piece and hook was created.
This ment that it was the hook moving forward and backwards and then having a static "chain" between it and the starting point. Either consuming "links" as would move backwards ontop of them or created "links" as it moved away from them.

Keep in mind this is pseudo code but should give you an idea how to make it.
local arrayOfPieces = {}
local function BuildHook()
-- Bunch of variables you need to get
startX,startY,
hookX,hookY,
lastPieceX,lastPieceY,
singlePieceWidth
-- The hook pseudo code
if(hookX - lastPieceX >= singlePieceWidth) then
local newPiece = display.newImage('singlePiece.png');
newPiece.x = lastPieceX + singlePieceWidth/2
newPiece.y = lastPieceY
table.insert(arrayOfPieces,newPiece)
end
if(hookX < lastPieceX) then
lastPieceArrayPos = table.getn(arrayOfPieces)
table.remove(arrayOfPieces,lastPieceArrayPos)
lastPiece = arrayOfPieces[lastPieceArrayPos - 1]
end
end