Although it might vary a bit from school to school, we practice this with our arm straight at the conclusion of the hammerfist strike. Your elbow will be bent while perfoming the strike itself, but once completed, the arm is extended all the way out. I imagine it is simply to aim your kick in the direction that the form is now going to flow. At this point the form's overall motion direction shifts from the "east-west axis" to the "north-south axis". I can't think of a reason for it other than aesthetics. I hope this helps.