Mark Cuban said Wednesday that he's been "dipping my toes" into the market during its recent stretch of coronavirus-driven volatility.

"I've been putting in 1% [to] 1.5% to work on every down day," Cuban said on CNBC's "Squawk Box."

The billionaire entrepreneur said he's mostly been buying the SPDR S&P 500 ETF Trust, the exchange-traded fund that tracks the S&P 500 index.

He said he's also buying shares of Live Nation, and that he's sold some of his put and call options because "the premiums are just incredible. It's stunning the premiums that are in place right now."

Cuban said he thought the market had settled into a trading range of up 5% one day to down 5% the next. "I'm not quite sure why," he added.

"It felt like for a while we had active management doing all the work and trying to figure things out and now over the last three days it feels like we're starting to get more algorithmic trading coming into the market," Cuban said.

"I'll act accordingly," he added.

The "Shark Tank" investor's comments come as U.S. stock futures were pointing to a significant loss at Wednesday's open on Wall Street, one day after the Dow Jones Industrial Average rebounded more than 1,000 points.

Last Thursday, Cuban told CNBC he added to his stake in Twitter. "I'm a long-term holder there. I owned shares going into this decline. I don't know what's going to happen or when, but I think long-term we'll be OK."

He also said then that he bought shares in Live Nation earlier last week.