How do I use the Pen tool to subtract from shape in Photoshop?


I'm following this tutorial and I got stuck in this step

Using the same Pen Tool (P) in a new layer we must represent the frontal part for letter “O”. Firstly we need to draw the outer shape of the letter “O” and close off the path, then select the path in Paths panel, go to Pen Tool (P), choose Subtract from shape area option from Options bar and draw in where the hole should be.

How do I achieve that step?

Here is my attempt to follow the instruction... what am I doing wrong??

I'm using Photoshop CC 2015

8/14/2016 7:33:00 PM

enter image description here

This is the option you are looking for. When you select the pen tool, it is the second icon in the option bar.

8/15/2016 8:45:00 AM

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