PSD file, one word of text... warp tool grayed out

I have to warp one word of text to fit inside a banner.
I made a PSD file and when I click on the type tool the 'warp' icon is unavailable/grayed out. I need to do this and do not understand why it's not working when I've done this a hundred times.
I'm working on a logo and this is holding me up.
Any help would be appreciated.
It's interesting that there are instructions on how to do this or that, but NEVER what to do or look for when it doesn't work.
Thanks!

The type's transparent background indicates you rasterized the type. Warp in the Type options bar requires your original (vector) version.
If you want to warp rasterized text, choose Edit > Transform > Warp

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