I'm not aware of a way to wrap the option text. The only practical solution I've run across is to ellide and/or abbreviate some of the text, then set the full value in the tag:
<option value="This is a rather long selection text">This...selection text</option>
<option value="Cinnaminson, New Jersey, United States">Cinnaminson, NJ, USA</option>
You could split the text across two options, setting the full value in each tag, but that might be confusing to the user since only one of the lines could be selected:
<option value="This is a rather long selection text">This is a rather...</option>
<option value="This is a rather long selection text">...long selection text</option>