It does not seem to work very well in all browsers. Firefox seems OK
for a start.
The first need is to tell the drag script to allow dragging in form
elements, which is prohibited by default:
$.event.special.drag.not = "";
The second trick is to do a little event delegation and actually bind
the events to the select elements instead of the options.
The third trick is to use a proxy element, because orphaned options
elements don't really behave nicely.
http://jsbin.com/uvewa
Again, this does not work well in Chrome or MSIE, so ultimately I
would recommend replacing the select elements with some other
controllable markup.