These two shots are I believe of the closely related mototie octopus. There was 21 secs between the shots and it changed faster than that when irritated by the dive guide. About 2-3 inches long delightful little beastie.
Nice picts Tim. The red and brown is the "normal" chromatophore system at work. As it is directly controlled from their brain, they can change colors in fractions of a second. The blue eye spot is from iridescence, a different system.
We sometimes see a similiar stripped pattern in swimming O. vulgaris (common octopus) in the Caribbean. I think it may mimic a local parrot fish.