"Live Bait" is a short story in More & More Tales to Give You Goosebumps.
Timmy hates fish. Timmy is on vacation at the lake and another boy named Duke picks up a dead fish, plucks out its eyeball and sticks it in his mouth.
Duke goads Timmy into going fishing by basically daring him. Unfortunately, all of the boats available for rent at the dock are rented. Finally they spot a little dinghy at the end of the dock and a shack with a weathered sign advertising for sale the titular line, 'Live Bait.'
Inside the shack, an old man tells the boys that if they promise to give him their biggest catch, they can rent the boat and have some bait for free. The boys soon find themselves lunch for a huge monster fish, who is big enough to swallow them, who then is killed by the old man. The monster spits the kids up and the old man thanks them for helping him catch the monster. He then wraps Duke and Timmy up in a net and dumps them into a jar marked 'Live Bait.'