boy do i feel stupid. fixes #1022

src/generators/nodes/Element.ts

@@ -55,7 +55,7 @@ export default class Element extends Node {
 							attribute.name === 'value'
 						) {
 							let select = this.parent;
-							while (select && select.type !== 'Element' || select.name !== 'select') select = select.parent;
+							while (select && (select.type !== 'Element' || select.name !== 'select')) select = select.parent;
 
 							if (select && select.selectBindingDependencies) {
 								select.selectBindingDependencies.forEach(prop => {

test/runtime/samples/option-without-select/_config.js

@@ -0,0 +1,16 @@
+export default {
+	solo: true,
+
+	data: {
+		foo: 'hello'
+	},
+
+	html: `<option value='hello'>hello</option>`,
+
+	test(assert, component, target) {
+		component.set({ foo: 'goodbye' });
+		assert.htmlEqual(target.innerHTML, `
+			<option value='goodbye'>goodbye</option>
+		`);
+	}
+};

test/runtime/samples/option-without-select/main.html

@@ -0,0 +1 @@
+<option value='{{foo}}'>{{foo}}</option>