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To fully appreciate how QDT manages to sustain such a high dividend yield, one must understand its operational mechanics. The fund adopts a "poor man's covered call" strategy on the NASDAQ 100, leveraging long-dated in-the-money call options known as LEAPS. This technique allows QDT to mimic traditional stock ownership while requiring substantially less capital.

By employing this approach, the ETF purchases deeply in-the-money LEAPS, which provides it with a delta close to one. This means that the price movement of the ETF's options closely mirrors that of the underlying NASDAQ 100, effectively allowing the ETF to behave like a stockhold without the significant capital outlay.