I suggest putting tons of melee damage and stamina into a lighting wyvern if you have one. Then go out and look for a deathworm which can only be found underground then agroed to come up and fight in the desert areas of Scorched Earth and Ragnorok. Dont worry if you dont have that high of a level wyvern. A 100 would be good and besides deathworms only spawn at level one or at least thats what i have noticed.Once you are ready, go to the Deathworm and kill it once that's fine
go to its inventory and collect what you deserve.
Since everyone else's tips are stupid. If you want to find a deathworm, you can use k mode and look underground. If a worm is nearby, you will see it's body. You can use a land mount like a thyla or a flyer like the wyvern. If flying, point the flyer downwards to make controlling easier. As for fighting it....use whatever dino you have. Rexes are great, wyverns too. Wolves are effective against the worms as well as the alpha to. If you plan to live out on the dunes in SE, be prepared to have random encounters time to time. These worms CAN destroy thatch-stone-adobe. My solution was to just use my rex army but wolves work great early game.