I am a US citizen living in the US. I want to write covered call options to receive premiums. If implied volatility increases and/or the price of the underlying rises, an out-of-the-money call can increase in value.
Does this increase in value of the option pose a risk to me as the writer? Or is the risk exclusively associated with exercise of the option when it is in-the-money? Am I totally safe from risk if the option remains out-of-the-money (the stock price is lower than the call's strike price) from the time it is written until expiration, even if the movement of the stock/IV rises the price of the option in the intermediate time frame?