Hi Karen,
You may well be dealing with a Lateral meniscus cyst.
Damage to the meniscus or previous surgery, can often result in a channel forming basically that allows fluid to fill a cyst that appears as a swelling/lump on the lateral aspect of the knee.
Certain activities will exacerbate the condition and others may well not affect it, hence the symptoms your patient is experiencing.
Sometimes an injection can help just to settle condition down, if very large, then aspiration is possible, and a last resort is surgical intervention. This you must try to avoid, as the lateral meniscus should be preserved for as long as possible.
A tight ITB will not help, so releases here are key. You may try some aggressive, compressive massage and pulsed ultrasound.
Hope this has been of value.
Regards
Nigel