You must never smear it on the olive, you lightly smear it on the pipe ABOVE the olive.... ie where the pipe tightens to the fitting above the cone /olive.
Eh?
The pipe doesn't tighten to the fitting. The olive is compressed between nut and fitting; it tightens to and forms the seal to the pipe and to the fitting.
You shouldn't need compound with new olives. If a fitting drips, put a smear of compound around the olive.
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