Here's an idea I came up with based on a lure I saw online. The difference is the 1/4" nipple provides more area for scent. It being steel makes it less likely to get trashed by the bite. Here's how it works:
Take a 1/4" nipple 3" long, drill hole thru 2 caps run line thru one cap, the nipple, and another cap. Screw cap on the hook end to the nipple, stuff a peice of sponge soaked in your favorite scent in the nipple and screw the cap on the swivel end to the nipple. Attach your squid to the end and bait up.
Do you think this will work? Is there a better way to accomplish this? Is it worth the trouble?