Trace the stocking pattern onto tracing paper; cut out.
Form the stocking cuff from the waist ribbing. With stocking pattern right side down, pin top edge of pattern even with inside edge of sweater waist ribbing; center arrows on pattern with a sweater cable. Using a water-soluble marking pen, extend edges of stocking through waist ribbing to outside edge. Cut out stocking front.
Turn over pattern and sweater; pin pattern right side up to sweater. Cut out stocking back. Cut a stocking front and back from lining fabric, adding 1/2-inch seam allowances along the top edges.
Cut and piece 2-inch-wide strips of red wool felt to measure 43 inches long. Fold the strip over the cord with wrong sides together, and sew close to cord to make piping.
With right sides together and allowing for 1/2-inch seam allowances, sew piping around cable-knit stocking front, except do not sew piping to ribbing.
Due to the bulk of the cable-knit fabric and felt, the stocking back must be hand-sewn in place. With wrong sides together, turn under seam allowance on stocking back and pin it to the stocking front. Hand-sew stocking back to stocking front, starting and stopping where piping ends.
Using a needle and thread, overcast raw edges together on each side of the ribbing. Turn ribbing down to form cuff.
Sew together lining pieces with right sides together. Press under top edge 1/2 inch to wrong side of lining. Insert lining inside stocking. Fold ribbon in half for hanging loop; slip raw edges of loop between lining and stocking and pin in place. Hand-sew lining to stocking around opening, catching hanging loop as you sew.