Onetime high flyer Lululemon has run into trouble over the past month.

The stock has fallen 17% from a Sept. 2 high with losses accelerating even after an earnings report that topped analysts’ estimates. The stock remains more than 40% higher for the year.

Todd Gordon, founder of TradingAnalysis.com, says strong demand should help Lululemon recapture upside momentum.

“Lulu is well positioned to benefit from the work-from-home, stay-at-home environment. Comfort clothes are really, I think, second to none … But I also think they’ll benefit if and when the work-from-home, stay-at-home environment ends, because gyms and yoga classes will open back up and the demand will stay strong,” Gordon told CNBC’s “Trading Nation” on Thursday.

He sees strength on three fronts: e-commerce, international expansion and its acquisition of Mirror, a augmented reality interactive fitness company.

“They’re looking to grow at a compound rate of 40% per year in China and … their e-commerce is also a big focus, their margins are a lot better on the e-commerce side compared to their in-store sales,” said Gordon.

Lululemon reported a 157% increase in online sales for its quarter ended Aug. 2. In-store sales fell 51%. As for Mirror, Gordon anticipates the offering could help boost sales for its workout clothes.

Lululemon gapped down below $300 in mid-September. Gordon now expects the stock to close that gap to move back toward $360. To capture that move, he is buying a 340 call with Nov. 6 expiration and selling the 360 call. At the time of filming Thursday, that $20 call spread cost $7.80, or $780, with maximum profit of $2,000 — giving a maximum potential gain of roughly $1,200.

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The pressing challenges posed by the pandemic and the deepest recession in living memory will soon shift attention elsewhere.

Nonetheless, it’s troubling to discover that a Wall Street titan was manipulating one of the world’s most liquid securities markets — U.S. Treasury futures — long after the practice was outlawed. This shows how traders often remain fixed in their old ways. Keeping behavior in check is incredibly difficult even for those banks that can afford the most sophisticated surveillance.

Years after global lenders were caught rigging interest-rate benchmarks and currency markets, costing them billions of dollars in fines, their employees were still finding ways to work the markets to their own advantage. Once regulators catch up with one practice, traders seem to simply find another way.

Spoofing — placing a bid or offer with the intent to cancel it before executing — became illegal under the 2010 Dodd-Frank Act. In JPMorgan’s case, the practice appears to have been widespread. During the years covered by this case, between 2008 and 2016, the bank’s traders placed hundreds of thousands of spoof orders, according to the Commodity Futures Trading Commission, which helped lead the investigation.

Specifically, the company admitted to being responsible for 15 traders’ wrongdoing when they placed orders they didn’t intend to execute in the precious metals and Treasury markets. Half a dozen employees face charges for manipulating gold and silver futures and the bank has entered a three-year deferred prosecution agreement over two counts of wire fraud.

In fairness, it was always going to take a while for the finance industry to adjust to the spoofing ban. Traders are allowed to place and cancel orders, and masking their real intent is how the market has always worked. A trader wants to conceal their own strategy to secure the best price.