Mohawk Industries (MHK, news, chart, volatility) saw bearish trading ahead of its earnings release. Late in the day Monday, with shares trading down $3.06 to $45.32, a block of 3,000 November 40 puts traded on the offer for $1.35 a contract. Another 3,000 November 35 puts traded bidside for 35 cents. Open interest in both contracts has increased by 3,000, which leads to the conclusion the activity was part of an opening bear put spread. If so, the strategist paid $1.00 in exchange for a potential $4.00 payoff if MHK slides to $35 or less by November options expiration (17 days). The trade is off to a good start. Shares are down 14.8 percent this morning after the Georgia-based maker of floor coverings (carpets, tiles, rugs, etc) reported third quarter earnings that missed estimates and issued in-line guidance for the fourth.