Most Helpful Guy
What I do is lightly wrap the cord around 3 of my fingers, and put them in a little soft protective case. I bought a pair of Bose IE2 in ear headphones 5 years ago and they still work perfectly and are in great shape!
This is the case that came with my headphones, and it's perfect for protecting small in ear headphones. There are other options out there, but either this or something similar would be perfect for the job.