Well, I assumed it was something do with fishing, but that could be just me relating to the word "squid." I can't remember the context in which it was used, as it was a few years ago that I heard the term. Let's go with your definition unless someone from the East Coast can shed some more light on it...thanks, Karrie.
Oh... see... I assumed you were talking slang. If you're talking about actually fishing, then, it's literal. You jig for squid, like you'd jig for pike or perch.