Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
CITADEL L P
  2. Issuer Name and Ticker or Trading Symbol
E TRADE FINANCIAL CORP [ETFC]
5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
__X__ Director __X__ 10% Owner
_____ Officer (give title below) _____ Other (specify below)
(Last)
(First)
(Middle)
C/O CITADEL INVESTMENT GROUP LLC, 131 S. DEARBORN STREET, 32ND FL
3. Date of Earliest Transaction (Month/Day/Year)
06/18/2009
(Street)

CHICAGO, IL 60603
4. If Amendment, Date Original Filed(Month/Day/Year)
6. Individual or Joint/Group Filing(Check Applicable Line)
___ Form filed by One Reporting Person
_X_ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)
2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)
4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)
5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)
6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)
7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock               47,848 D (1)  
Common Stock               289,145 D (2)  
Common Stock 06/18/2009   P   45,454,546 A $ 1.1 134,266,882 D (3)  
Common Stock 06/18/2009   P   45,454,545 A $ 1.1 45,454,545 D (4)  

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)
2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)
5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)
6. Date Exercisable and Expiration Date
(Month/Day/Year)
7. Title and Amount of Underlying Securities
(Instr. 3 and 4)
8. Price of Derivative Security
(Instr. 5)
9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)
10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)
11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
CALL OPTION [short] $ 1.32 06/18/2009   S/K     1 06/18/2009 06/17/2010 Common Stock 45,454,545 (7) 1 D (5)  
PUT OPTION [long] $ 1.045 06/18/2009   P/K   1   06/18/2009 06/17/2010 Common Stock 45,454,545 (7) 1 D (5)  
CALL OPTION [long] $ 1.32 06/18/2009   P/K   1   06/18/2009 06/17/2010 Common Stock 45,454,545 (7) 1 D (6)  
PUT OPTION [short] $ 1.045 06/18/2009   S/K     1 06/18/2009 06/17/2010 Common Stock 45,454,545 (7) 1 D (6)  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
CITADEL L P
C/O CITADEL INVESTMENT GROUP LLC
131 S. DEARBORN STREET, 32ND FL
CHICAGO, IL 60603
  X   X    
CITADEL INVESTMENT GROUP LLC
131 S. DEARBON STREET, 32ND FLOOR
CHICAGO, IL 60603
  X   X    
CITADEL EQUITY FUND LTD
C/O CITADEL INVESTMENT GROUP, L.L.C.
131 S. DEARBORN STREET, 32ND FLOOR
CHICAGO, IL 60603
  X   X    
WINGATE CAPITAL LTD
C/O CITADEL INVESTMENT GROUP, L.L.C.
131 S. DEARBON STREET, 32ND FLOOR
CHICAGO, IL 60603
  X   X    
GRIFFIN KENNETH C
C/O CITADEL INVESTMENT GROUP II, L.L.C.
131 S. DEARBON STREET, 32ND FLOOR
CHICAGO, IL 60603
  X   X    

Signatures

 /s/ John C. Nagel, Authorized Signatory   06/22/2009
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) This security is owned by Citadel Derivatives Trading Ltd.
(2) This security is owned by Citadel Derivatives Group LLC.
(3) This security is owned by Citadel Equity Fund Ltd. ("CEF").
(4) This security is owned by Wingate Capital Ltd. ("Wingate").
(5) Wingate and CEF entered into a collar in which Wingate is short an OTC call option and is long an OTC put option. Only one of the options can be in the money on the expiration date, at which time the in-the-money option will be exercised (and settled for cash), and the other option will expire. If neither option is in the money on the expiration date, both options will expire.
(6) Wingate and CEF entered into a collar in which CEF is long an OTC call option and is short an OTC put option. Only one of the options can be in the money on the expiration date, at which time the in-the-money option will be exercised (and settled for cash), and the other option will expire. If neither option is in the money on the expiration date, both options will expire.
(7) The put and call options comprise a collar entered into between Wingate and CEF. Wingate paid an initial premium of $475,312 for the collar. The initial premium was calculated utilizing a fair market value with respect to the Common Stock of $1.10.
 
Remarks:
Each of the Reporting Persons expressly disclaims beneficial ownership of the securities described herein except to the
 extent of such person's pecuniary interest therein. Mr. Griffin serves as the deputized director of the Reporting Persons.

In filing this Form 4 the Reporting Persons are not conceding that the derivative transactions described above are matchable
 transactions for Section 16 purposes.

A Form 4 is limited to a maximum of ten reporting persons. As a result, this Form 4 is one of two filed today reporting on
 the same securities by the following eleven joint filers: Citadel Limited Partnership, Citadel Investment Group, L.L.C.,
 Citadel Equity Fund Ltd., Wingate Capital Ltd., Kenneth C. Griffin, Citadel Advisors LLC, Citadel Holdings I LP, Citadel
 Holdings II LP, Citadel Derivatives Group LLC, Citadel Derivatives Trading Ltd. and Citadel Investment Group II, L.L.C.

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