This works for headphones or any cord for that matter.
Step 1: Wrapping
First, seperate your pointer and middle finger like the image.
Step 2: Wrapping Cont
Wrap about 3/4 of the cord around your fingers, starting with the heads/buds.
Step 3: The hardest part, but its easy.
So, Move the wrap further up on your fingers, then wrap most of the remaining around the first wrap. With 1 or 2 inches left, push the rest through the center and pull tight.
Step 4: To unwrap.
Now that you have the final, unwrapping is a little different. Then, pull out the end of the cord out of the center. Finally, pull the 2nd wrap off the first pull it tight and your done! Remeber to favorite and this is also taking part in the burning questions, so dont forget to vote!