Which option would be best for house training?

I read the wiki and it did not have the answer to my specific question. I'm trying to house train my 8 lb, 2 year old Shih Tzu mix. I built a dog door with the eventual goal of letting him have free roam of the house and yard whenever I'm not home. Right now, I have a large 48×30 crate for him butted up against the dog door, so when I'm not home, he has full use of the yard plus a small area inside the house. I also have a smaller crate which is a more appropriate size for crate training. I live alone, so my options are limited. I work nights and sleep during the day. So I have a couple options and am wondering which is the best option:

Option 1 is to crate him in his small crate during the day while I'm sleeping and let him out intermittently so I can monitor his peeing and provide treats when he goes outside.

Option 2 is to let him have the yard and small house area during the day, and just restrict my house training efforts to my days off (I have 3-4 days off a week)

Which would be the best option for my dog's house training? This is just temporary and my hope is that he'll be trustworthy enough to be able to do whatever pretty quickly. ​