The Setting I need is greyed out.
Outlining the type works as does Efferct>Offset Path which has the advantage of keeping the type live.
On text, you need to do this in the 'Appearance' panel. This way you can still maintain 'editing' your text too.
Clarifying the tips above
As you are figuring out, Rite-Oak, you can't re-align the stroke on live (editable text). If you are willing to commit to the type being in final form, you can select it and pick Type > Create Outlines and you can align the stroke to the outside using the button you pointed to in the first screen shot. Once the type is converted to outlines, you won't be able to edit the text though.
Thank you Barb for your concise answer, it was very helpful. When I click on "Offset Path" to edit the stroke, I do not see an option to edit the color. Currently mine is set to default white. Thanks in advance.
You can't edit the color because the description is not complete.
1. Select the text object
2. open the appearance panel
3. add a new fill using the buttons in the appearance panel
4. move the fill below the "Characters"
5. Change the color to whatever you like
6. apply Effect > Path > Offset path only to that fill, not to the text object.
7. Read everything you can find about the appearance panel.
Thank you @Monika Gause, your trick helped
I've created outlines for my text, still greyed out. You know of anything that owuld cause this?