What is an options trade in terms of the stock market?

[Xanthia Alysha]

I recently opened an account with TradeKing, and I was wondering what an options trade is. Also, why would people want to sell options rather than sell the stock at its market value?

Thanks.

[michael9]

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[JamesYates]

An option that gives the legal right to buy or sell an underlying entity at a predetermined price by a certain time in the future at a fixed price. For stocks, an option generally covers 100 shares of the underlying. For the future, an option usually covers a futures contract.
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