you can only trade a sun stone with someone who has fire red, leaf green, or emerald.
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There is no sunstone in Pokemon red it onnly appears in later games.
Cottonee -> (Sunstone) Whimsicott
in the Pokemon games, you give a sunstone to an eligible Pokemon and they will evolve. for example, Gloom will evolve into Bellossom when given a sunstone and Sunkern will evolve into Sunflora when given a sunstone.
There are only 2 things a sunstone does. it evolves gloom to bellosom and sunkern to sunflora.
u get a sunstone where bill used to live in kanto by cathching Pokemon tha she describes but a sunstone dosent evolve an evee