Cuban: Here's why I'm buying Facebook

Facebook shares rallied as much as 20 percent Tuesday from their intraday low of $74.72 on Monday amid the Dow's epic selloff. And that's good news for billionaire investor Mark Cuban, who disclosed on Monday's "Fast Money" that he used the selloff as an opportunity to buy shares of the social media giant.

"I added to Facebook," said Cuban. "I added some yesterday I think at $87."

He called Facebook, along with Google, a dominant force in the new media landscape.

"It's driving the ad economy, it's driving content consumption in so many different ways, they're doing a lot of things right. "

Facebook, along with other so-called "FANG" stocks (Facebook, Amazon, Netflix and Google) have seen some of the most dramatic moves off their lows. Netflix shares have rallied 21 percent from their Monday intraday low.

But Cuban didn't stop there. He also appeared to make a broader market call as well, revealing that he took advantage of heightened volatility to make some bullish bets.

When the VIX was trading near 47, Cuban said he "sold puts." When traders sell puts, they are willing to buy the underlying stock in exchange for collecting the price of the options.

Cuban added that Monday's manic market moves weren't from traditional buying and selling and blamed high-frequency trading for the whipsaw day of trading. Still, Cuban seems content to make a quick trade.

"I actually got paid more than I expected to get paid on those puts."