In a large heavy bottomed pot, add a table spoon of olive oil, bay leaves and peppercorn. Place it on medium heat.
Immediately, add the octopus to the pot and cover. Let it cook for about 45 minutes or an hour, or until you can pierce it easily with a fork.
When ready drain the octopus and let it cool for a few minutes. Reserve some of the water released from the octopus.
In a small bowl combine together the olive oil, red wine vinegar, minced garlic, chopped parsley, chili flakes and lemon juice. Set aside.
Chop the octopus tentacles into small pieces of about 3 cm in size and place into a large bowl.
Mix the octopus with the prepared mixture and add about a tablespoon of the juices which the octopus released while cooking.
Season with salt and pepper to taste. Sprinkle some extra parsley on top.
Serve immediately or cold. It can stay in the fridge in an air tight container for about 2 days.