A hand signal is given only if the turn signal indicator is defective or missing, at any time of day. In the picture, the driver is moving into the left lane, so they have held out their 
If a vehicle's turn signal indicators are defective or missing, the driver must give a warning signal by hand before maneuvering (clause 36). This requirement applies at any time of day. In the picture, the driver is moving into the left lane and has held the left arm out to the side, which is the left-turn signal (clause 37).
Option 2. Giving a hand signal is not limited to daylight hours: if the lights are defective, hand signals must also be used in the dark.
Option 3. You cannot give a hand signal just because you want to: if the turn signal indicators work, the driver must use them.