squid tend to sit over reefy area's. they seem to be an ambush predator, preferring to attack from the cover of kelp or other such structure.
i usually target them in the bays around the high tide but you will also find them on the deeper ledges. as a note, we have caught them in less than a meter of water (although these tend to be smaller specimens)
the most common methods seem to be a jig (prawn imitation, weighted at the chin) or a squid spike. dusk and dawn are the prime times, as previously noted.
we often pick them up switch baiting when they are harassing our live bait. you'll notice your float or balloon bobbing. a slow retrieve doen't seem to spook the ceph, when you get him in close throw a jig behind him and rip it a couple of times. if he changes direction crank the livey in while twitching the jig, its a two man op. let him do his thing and try and stay out of the way then wack a big sea master through the top of the hood and send him straight back out.
few fish can resist a live squid!
tight lines,
kurt